Liquiditätsfalle

German

Etymology

Liquidität (“liquidity”) +‎ Falle (“trap”)

Pronunciation

  • IPA(key): [likvidiˈtɛːt͡sfalə]
  • Hyphenation: Li‧qui‧di‧täts‧fal‧le

Noun

Liquiditätsfalle f (genitive Liquiditätsfalle, plural Liquiditätsfallen)

  1. (economics) liquidity trap (a situation in which injections of cash into the banking system by a central bank fail to lower interest rates or stimulate economic growth, because people prefer to hoard cash)
    Wenn die Zinsen bereits nahe null liegen, droht die Geldpolitik in eine Liquiditätsfalle zu geraten.
    When interest rates are already near zero, monetary policy is at risk of falling into a liquidity trap.
    In der Liquiditätsfalle verpufft die Wirkung von Leitzinssenkungen nahezu vollständig.
    In a liquidity trap, the effect of base rate cuts evaporates almost completely.

Declension

Declension of Liquiditätsfalle [feminine]
singular plural
indef. def. noun def. noun
nominative eine die Liquiditätsfalle die Liquiditätsfallen
genitive einer der Liquiditätsfalle der Liquiditätsfallen
dative einer der Liquiditätsfalle den Liquiditätsfallen
accusative eine die Liquiditätsfalle die Liquiditätsfallen

Antonyms

  • Investitionsneigung (propensity to invest; the opposite of hoarding cash)

Coordinate terms

  • Investitionsfalle (investment trap; where investments don't react to interest rates)
  • Nullzinsgrenze (zero lower bound; the technical floor for nominal interest rates)
  • Deflation (a general decrease in prices, often associated with liquidity traps)
  • Geldmenge (money supply; which increases without stimulating demand)
  • Liquiditätsengpass (liquidity bottleneck)
  • Keynesianismus (Keynesianism; the school of thought that defined the term)

References

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