Resource title

Escaping from a combination of liquidity trap and credit crunch

Resource image

image for OpenScout resource :: Escaping from a combination of liquidity trap and credit crunch

Resource description

This brief exposition suggests that the Federal Reserve System temporarily guarantee a lower bound on stock prices in order to escape the current combination of liquidity trap and credit crunch. It shortly discusses reasons for this measure, consequences, and some alternatives. It is meant as a policy suggestion in case the recapitalization of banks, agreed upon in mid-October 2008, turns out to be insufficient for stabilizing financial markets and the downward spiral in asset prices resumes.

Resource author

Frank Heinemann

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26495

Resource license

Adapt according to the presented license agreement and reference the original author.