Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/186970 
Authors: 
Year of Publication: 
2000
Series/Report no.: 
Working Paper No. 298
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
Paul Krugman has argued that Japan is in a liquidity trap and that it can recover only if the central bank there follows a policy of "credible inflation." This paper argues that Krugman's proposal, which is similar to what Fisher proposed during the depression, is based on a different interpretation of the liquidity trap from that proposed by Keynes and as a result his policy recommendations can result in neither the elimination of the trap nor in Japan's economic recovery.
Document Type: 
Working Paper

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