Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Fear or Fear Not? My colleague John Rekenthaler recently wrote about the hazards of illiquid mutual fund investments. Long story short, mutual funds and illiquid investments are a potentially lethal ...

When I was studying economics, the idea that an economy might face a “liquidity trap” seemed absurd. Basically, the concept of the liquidity trap was that the monetary authorities could not “push on a ...

Popular economics suggests that economic activity results from a circular flow of money in the economy: One person’s spending is a second person’s income, and the second person’s spending is a third ...

The USA is not in a liquidity trap anymore: "The output gap can be [estimated] by attempting to measure slack directly… …The ratio of employment to prime age (25 ...

Europe may still be stuck in a liquidity trap. During the financial crisis, this economic idea came into play as economists worried the Federal Reserve's move to buy assets couldn't avoid this ...

The U.S. economy is confronting a toxic mixture: deflation, a liquidity trap and debt deflation, as well as rising household and corporate defaults. Put plainly, the signs of a "stag-deflation"--a ...

LIQUIDITY traps: we can't stop talking about them. Since late 2008, the nominal interest rate target suggested by most standard monetary policy rules has been negative, leaving the American economy in ...

Is China caught in a "liquidity trap?" The topic periodically makes headlines in Western media outlets. The answer would appear to be obvious. Such pessimistic views have been going around for decades ...