liquidity trap

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00:55 Nov 5, 2021

English to French translations [PRO]
Bus/Financial - Economics
Additional field(s): Business/Commerce (general), Finance (general)

English term or phrase: liquidity trap

Definition from Economic Times:
Liquidity trap is a situation when expansionary monetary policy (increase in money supply) does not increase the interest rate, income and hence does not stimulate economic growth.

Example sentence(s):

The primary indicator of a liquidity trap is persistently low-interest rate levels mandated by the central bank of a country for a prolonged period. Though the primary aim of such government policies is to ensure robust economic activity, a liquidity trap can soon develop if not monitored closely. Groww
As traditional monetary policy is ineffective when there is a liquidity trap in the economy, governments look towards more unconventional methods to bring the economy out of the trap. One of the more effective remedies is quantitative easing. It is where central banks buy financial assets from commercial banks and other institutions, which raises prices for those assets, lowers yields, and increases liquidity in the economy. Corporate Finance Institute
In a liquidity trap, lenders find it hard to attract qualified borrowers. With interest rates nearing zero, there is little elbow room for additional incentives to attract highly-qualified candidates. Market Business News

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trappe à liquidité

Francois Boye

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trappe à liquidité

Definition from Wikipedia:
La trappe à liquidité, ou piège à liquidité (de l'anglais liquidity trap), est un phénomène économique au cours duquel, « une fois que le taux d'intérêt a chuté en dessous d'un certain niveau, la préférence pour la liquidité est telle qu'elle devient absolue, dans le sens où presque tout le monde préfère conserver de la monnaie plutôt que de détenir de la dette, du fait du taux d'intérêt si bas »1. Ce phénomène a été proposé par l'analyse keynésienne, dont le but est d'expliquer quand la banque centrale devient incapable de stimuler l'économie par la voie monétaire1.

Example sentence(s):

Lorsque le taux d'intérêt tombe au niveau le plus bas, parfois proche de zéro, les individus ou les entreprises envisagent de conserver leur argent et de l'épargner là où ils préfèrent, sans investir en pensant que le taux d'intérêt augmentera et réalisera d'énormes profits en espèces. - E-com♦️Finance

Francois Boye
United States
Local time: 05:23
Native speaker of:

French
PRO pts in category: 116

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