liquidity trap
noun[S]
ECONOMICSukusasituationin which agovernmentis notabletoencourageeconomicactivity, forexamplebycuttinginterestrates, becausepeoplewho havemoneydo notwanttospendit:
Thiscarriesthedangerof the 'liquiditytrap', whererealinterestratescannot becutsufficientlytostimulategrowthbecausepricesarefallingevenfaster.