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re: Fed keeps buying bonds at $85 billion monthly pace
Posted on 6/20/13 at 12:25 pm to LSURussian
Posted on 6/20/13 at 12:25 pm to LSURussian
quote:
I have to confess I have NOT reached that point....
More to do with the economy as a whole than on an individual basis.
Basically, liquidity trap indicates there are people with money who normally would lend it to others but such low interest rates means a very little return on the lending indicating they will just hold on to the money. They also dont have anything to spend the money on so they dont ffect the IS curve. Essentially they hold on to money affecting money velocity
1
Posted on 6/20/13 at 12:28 pm to GenesChin
So you ARE indifferent to more money?
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