Japanese Liquidity Trap
From Dickinson College Wiki
Japanese Liquidity Trap
Purpose: To investigate the problems facing the Japanese economy by looking at the low interests rates in Japan in the late 90's. We look to explore in depth:
- What is a liquidity trap?
- What were the underlying reasons for the problem?
- What were the suggestions for improvement?
- What are some of the alternative channels that would have possibly helped boost output despite low interest rates?
- Which alternative channels were used? What worked?
- What is the current status of the Japanese economy?
- Looking to the future, what obstacles are there to overcome? What must be done?
