Krugman on the Liquidity Trap: Why Inflation Won't Bring Recovery In Japan
Jan Kregel
Economics Working Paper Archive from Levy Economics Institute
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.
Date: 2000-03
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Citations: View citations in EconPapers (3)
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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:lev:wrkpap:wp_298
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