Alstadheim, Ragna; Henderson, Dale W. - 2004
, possibly, balanced
budgets.
Keywords: price-level indeterminacy, multiple equilibria, zero bound, liquidity trap, monetary …-foresight, su-
perneutral model with flexible prices which may have a liquidity trap. We adopt
what we regard as the conventional … definition of a liquidity trap: a liquidity trap is
a region of the money-demand function in which bonds and money are perfect …