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  • Liquidity crunch vs. liquidity trap & hyperdeflation

    What is the difference between a liquidity crunch and a liquidity trap? It is my understanding that what is currently happening in the market is a liquidity trap which is why Bernanke is injecting money directly into the banks and throwing out more helicopter money. Is a liquidity crunch and trap the...
    Posted to Economics Questions (Forum) by Pyramid on Thu, Dec 18 2008
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