Signs of a liquidity trap

Discussion in 'Economics' started by gastropod, Aug 16, 2008.

  1. For the last month M1 has been growing quicker than M2. You can see this here:
    Beginning here ->
    and then on to specific releases...

    One of the few things the Fed. can do to stimulate the economy in such a situation...outright buy stocks and bonds...and you thought the markets wouldn't be propped up ;-)