Paul Krugman: Liquidity Trapped

Liquidity Trapped, by Paul Krugman, in NY Times: Some readers may recall that back in 2008, when I began writing about the dangers of a liquidity trap and all that implied, I got a lot of angry pushback from the usual suspects. The liquidity trap is nonsense, they said; printing money is always inflationary; someone, I think Alan Reynolds, referred to “liquidity claptrap.”

But that’s where we are, you know: BNY Mellon Deposit Fee: Life in the Liquidity Trap. Banks are starting to pay negative interest on large deposits.

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