Couvrez ce sein que je ne saurais voir: liquidity trap in theory and history - Paradox, impasse and revival

Antoine Parent

SciencePo Working papers Main from HAL

Abstract: This paper proposes a methodological and epistemic analysis of the theory and practice of liquidity trap in contemporary economics and economic history. A unified theory of liquidity trap has yet to be established. Liquidity trap is defined in two ways in the literature: a zero interest rate, which has generated the recent zero lower bound literature and the original definition by Keynes (1936) of the absolute liquidity trap which refers, not necessarily to a zero interest rate, but to an episode in which the liquidity preference is infinitely elastic to the (possibly low) interest rate. The polysemic nature of this notion is a source of richness and ambiguity. The epistemological and methodological motivation for the paper is to propose new theoretical insights drawn from a macro-dynamic perspective into the liquidity trap issues raised in economic history and contemporary economics.

Keywords: Liquidity trap; Monetary theory; Macro-dynamics; Monetary history; History of economic thought (search for similar items in EconPapers)
Date: 2019-12
References: Add references at CitEc
Citations:

Published in History of Economic Ideas, 2019, XXVII (3), ⟨10.19272/201906103002⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Couvrez ce sein que je ne saurais voir: liquidity trap in theory and history - Paradox, impasse and revival (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03403285

DOI: 10.19272/201906103002

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().