in theory an economy is said to be in a liquidity trap when the monetary authority cannot achieve lower nominal interest rate in order to stimulate output [1] .
在理论上,一个经济体被认为是在流动性陷阱时,货币当局不能实现较低的名义利率,以刺激输出。
because the given period isn「t campatibile, the real interest rate of bank deposits or loans isn」t in accord with the nominal interest rate announced by bank.
thus, the effect of monetary policy on activity depends crucially on whether and how changes in the short-term nominal interest rate lead to changes in the current and expected real interest rates.
our interactive model uses the nominal interest rate (i)—approximately equivalent to the ten-year bond yield—and allows you to input your own inflation rate, ∏.