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liquidity trap

A liquidity trap is defined as a situation in which the short-term nominal interest rate is zero.

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Welcome to The New Palgrave Dictionary of Economics Online

The definitive resource for a new generation of economists

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The fourth online update is now live.

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New Palgrave Economics Writing Prize Winner 2008–9

The winner of our ‘Why Economics Matters’ competition, and the £1000 prize, launched in association with the Financial Times and the London School of Economics is Satnam Lehal, a graduate of Oxford and Cambridge Universities who works in financial services. To read Satnam’s winning essay click here.

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