English term
liquidity trap
The primary indicator of a liquidity trap is persistently low-interest rate levels mandated by the central bank of a country for a prolonged period. Though the primary aim of such government policies is to ensure robust economic activity, a liquidity trap can soon develop if not monitored closely. (Groww)
As traditional monetary policy is ineffective when there is a liquidity trap in the economy, governments look towards more unconventional methods to bring the economy out of the trap. One of the more effective remedies is quantitative easing. It is where central banks buy financial assets from commercial banks and other institutions, which raises prices for those assets, lowers yields, and increases liquidity in the economy. (Corporate Finance Institute)
In a liquidity trap, lenders find it hard to attract qualified borrowers. With interest rates nearing zero, there is little elbow room for additional incentives to attract highly-qualified candidates. (Market Business News)
| 5 +1 | trappe à liquidité |
Francois Boye
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Nov 4, 2021 12:46: changed "Kudoz queue" from "In queue" to "Public"
Nov 5, 2021 00:55: changed "Stage" from "Preparation" to "Submission"
Nov 8, 2021 23:54: changed "Stage" from "Submission" to "Selection"
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Proposed translations
United States
An economic geek with social skills
Native in: French 
Works in: English to French, French to English, Spanish to English, and 1 more.
trappe à liquidité
Lorsque le taux d'intérêt tombe au niveau le plus bas, parfois proche de zéro, les individus ou les entreprises envisagent de conserver leur argent et de l'épargner là où ils préfèrent, sans investir en pensant que le taux d'intérêt augmentera et réalisera d'énormes profits en espèces. (E-com♦️Finance)
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