The role of the “liquidity trap” in Keynesian economics

Abstract

Recent discussions in the literature have once again raised the question as to whether the “liquidity trap” plays a crucial role in Keynesian economics. This work first discusses the analytical aspects of this question. The author then examines the General Theory in order to determine Keynes’ own views on the matter. JEL: E12, E31, E52, B22

Keywords

• Liquidity trap. Keynesian economics
• General Theory