Está de vuelta! El estancamiento y la trampa de la liquidez

Carlos García

doi:10.11565/oe.vi141.44

It's Back! Stagnation and the Liquidity Trap

Authors

Carlos García Facultad de Economía y Negocios , Alberto Hurtado University

DOI:

https://doi.org/10.11565/oe.vi141.44

Keywords:

Common monetary policy, Central bank, Interest rates

Abstract

We are witnessing in Chile an economic situation in which the Central Bank of Chile has sharply lowered interest rates as part of the common, standard monetary policy applied in many countries when the economy needs to be reactivated. However, there may come a time when the interest rate can no longer be lowered, a situation known as the “liquidity trap.” Continue reading...