word
liquidity trap
lih-KWID-ih-tee TRAP
lɪˈkwɪdəti træpListen
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Syllable breakdown
liquiditytrap
Dictionary meaning
A situation in which interest rates are so low that extra money fails to stimulate spending or investment.
History and origin
Macroeconomics terminology.
Examples
- Central bankers worried the economy was sliding into a liquidity trap.
Common mispronunciations
lih-QUID-ity trap
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