Mises Daily
Author:
Richard C.B. Johnsson
Online Publish Date:
As concerns are raised about the risk of the Japanese economic malaise spreading to the U.S. and elsewhere, some commentators have tried to revitalize the old Keynesian idea of the “liquidity trap.” Although the trap itself follows from the J.R. Hicks IS-LM analysis, the basic idea is borrowed from J.M. Keynes. In fact, Japan has not been in such