▪️What Is a Liquidity Trap?
🔹A liquidity trap is a contradictory economic situation in which interest rates are very low and savings rates are high, rendering monetary policy ineffective.
🔺First described by economist John Maynard Keynes, during a liquidity trap, consumers choose to avoid bonds and keep their funds in cash savings because of the prevailing belief that interest rates could soon rise (which would push bond prices down).
#MUST_READ
🔹A liquidity trap is a contradictory economic situation in which interest rates are very low and savings rates are high, rendering monetary policy ineffective.
🔺First described by economist John Maynard Keynes, during a liquidity trap, consumers choose to avoid bonds and keep their funds in cash savings because of the prevailing belief that interest rates could soon rise (which would push bond prices down).
#MUST_READ
Target UPSC by Dr.Sudarshan Lodha
#must_read
#motivational
Samiksha faced repeated setbacks when she didn't clear the Prelims three times.
Yet, her spirit refused to break. Instead of letting disappointment defeat her, she transformed those years into fuel.
With every attempt, her determination burned brighter. She used the time to hone her knowledge and sharpen her skills for the Mains. Finally, her resilience paid off. Samiksha cleared Prelims and went on to secure an impressive rank, proving that true success lies in the ability to rise after every fall.
#motivational
Samiksha faced repeated setbacks when she didn't clear the Prelims three times.
Yet, her spirit refused to break. Instead of letting disappointment defeat her, she transformed those years into fuel.
With every attempt, her determination burned brighter. She used the time to hone her knowledge and sharpen her skills for the Mains. Finally, her resilience paid off. Samiksha cleared Prelims and went on to secure an impressive rank, proving that true success lies in the ability to rise after every fall.