TITLE

The Liquidity Trap: An Alternative Explanation for Today's Low Inflation

AUTHOR(S)
Arias, Maria A.; Yi Wen
PUB. DATE
April 2014
SOURCE
Regional Economist;Apr2014, Vol. 22 Issue 2, p10
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article examines the reasons behind the low inflation in the U.S. as of April 2014. Large scale asset purchases were declared to be a new policy tool by the Federal Open Market Committee of the Federal Reserve to improve the economy after the target federal funds rate had already been reduced to a range between 0 and 25 basis points. Others say that the unusually low inflation is caused by the weakening of the money multiplier.
ACCESSION #
95528917

 

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