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Liquidity Trap: Limits for Monetary Policy at the Effective Lower Bound

In: Instructor's Manual for Money: Theory and Practice

Author

Listed:
  • Jin Cao

    (Norges Bank)

  • Gerhard Illing

    (LMU)

Abstract

This chapter provides exercises for better understanding the limits of monetary policy at effective zero lower bound, the concept of liquidity trap, and the policies that improve efficiency. Exercises are short questions that mainly focus on the intuitions.

Suggested Citation

  • Jin Cao & Gerhard Illing, 2019. "Liquidity Trap: Limits for Monetary Policy at the Effective Lower Bound," Springer Texts in Business and Economics, in: Instructor's Manual for Money: Theory and Practice, chapter 7, pages 151-151, Springer.
    • Handle: RePEc:spr:sptchp:978-3-030-23618-2_7
    DOI: 10.1007/978-3-030-23618-2_7
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