What are some of the alternative channels that would have possibly helped boost output despite low interest rates?

From Dickinson College Wiki
Revision as of 18:53, 5 December 2006 by 172.16.16.44 (talk)
Jump to navigationJump to search

In order to get Japan out of this Liquidity Trap they must reach a target inflation rate over the long term and stick with it no matter what the cost. During the long economic slump in Japan, the monetary policy seemed to focus on a very low interest rate around 1995 to a near zero interest rate in 1999 and worsening problems ever since. The intent of the monetary policy has been to lower expectations of future interest rates. In order to sitmulate the demand for goods and services


Japanese Liquidity TrapWhich alternative channels were used? What worked?