1. Liquidity Trap Essentially the whole advanced world, accounting for 70 percent of world GDP at market prices, is in a liquidity trap. Paul Krugman 17 mars 2010 http://krugman.blogs.nytimes.com/

2. Source : Orphanides (2003) Monetary Policy in Deflation: The Liquidity Trap in History and Practice. Miméo, FED

3. Source : Orphanides (2003) Monetary Policy in Deflation: The Liquidity Trap in History and Practice. Miméo, FED

5. The remedy should come, I suggest, from a general recognition that the rate • of investment need not be beyond our control, if we are prepared to use our • banking systems to effect a proper adjustment of the market-rate of interest. It • might be sufficient merely to produce a general belief in the long continuance of • a very low rate of short-term interest. The change, once it has begun, will feed • on itself. ... • The Bank of England and the Federal Reserve Board ... should pursue bank-rate • policy and open-market operations a outrance ... [t]hat is to say, they should • combine to maintain a very low level of the short-term rate of interest, and buy • long-dated securities ... until the short-term market is saturated.