The USA is not in a liquidity trap anymore: "The output gap can be [estimated] by attempting to measure slack directly… …The ratio of employment to prime age (25 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

What Is a Liquidity Trap? A liquidity trap happens when an economy is in a recession but interest rates are already the lowest they can go, 0%, which is also known as the “zero lower bound.” What else ...

Liquidity refers to the ease with which a security or asset can be converted into cash. A truly liquid asset can be converted into cash without its value dropping significantly. Therefore, the most ...