At the heart of Keynesian business cycle theory is the so-called liquidity trap. Contra Keynes, however, economies don't falter because&nbsp;a sudden increase in the demand for money.

Original Article: <a href="https://mises.org/wire/saint-augustine-proto-austrian" target="_blank">"</a><a href="https://mises.org/wire/forget-liquidity-trap-loose-monetary-policies-cause-recessions" target="_blank">Forget the Liquidity Trap—Loose Monetary Policies Cause Recessions"</a>

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At the heart of Keynesian business cycle theory is the so-called liquidity trap. Contra Keynes, however, economies don't falter because a sudden increase in the demand for money.

Forget the Liquidity Trap—Loose Monetary Policies Cause Recessions

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