Japanese Liquidity Trap

Description

Introduction to the Research

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 in Japan?
• What were the suggestions for improvement?
• What are some of the alternative channels that would have possibly helped boost output despite low interest rates?
• What is the current status of the Japanese economy?