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kleinbl00  ·  3026 days ago  ·  link  ·    ·  parent  ·  post: Admit it: you know nothing about economics.

See, you're trying to make it complex again. When people are talking about a country in a liquidity trap, they're talking about whether that country has freely flowing cash in its economy.

The US had a "liquidity trap" in 2009 for the simple reason that banks were gunshy about lending money. Cash for Clunkers was a way out of that liquidity trap that didn't involve monetary policy.

This is why people don't trust economists. There's a driving need to over-complicate things in order to obfuscate the levers of power.