Japanese Liquidity Trap
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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?
- Is Japan in 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?
