Krugman on the Liquidity Trap: Why Inflation Won't Bring Recovery in Japan

Jan Kregel

Macroeconomics from University Library of Munich, Germany

Abstract: Paul Krugman has argued that Japan is in a liquidity trap and that it can recover only if the central bank there follows a policy of "credible inflation." This paper argues that Krugman's proposal, which is similar to what Fisher proposed during the Depression, is based on a different interpretation of the liquidity trap from that proposed by Keynes and as a result his policy recommendations can result in neither the elimination of the trap nor in Japan's economic recovery.

JEL-codes: E (search for similar items in EconPapers)
Pages: 19 pages
Date: 2000-10-23
New Economics Papers: this item is included in nep-mon
Note: Type of Document - Adobe Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 19; figures: included
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Krugman on the liquidity trap: why inflation won't bring recovery in Japan (2000)
Working Paper: Krugman on the Liquidity Trap: Why Inflation Won't Bring Recovery In Japan (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:0004045

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