# Links [[Keynes liquidity trap]] # Liquidity Trap Definition, Causes, and Examples Summary::Excerpt from investopedia.com. >Excerpt A liquidity trap is an adverse economic situation that can occur when consumers and investors hoard cash rather than spending or investing it even when interest rates are low, stymying efforts by economic policymakers to stimulate economic growth. (more...) --- # References Clipped from [Liquidity Trap: Definition, Causes, and Examples](https://www.investopedia.com/terms/l/liquiditytrap.asp) at 2024-03-22.