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Does a Liquidity Trap Really Turn Economic Laws Topsy-Turvy?

Tweet [1]

Steve Sexton, over at Freakonomics, argues not [2].  (HT James McCammon)

This post by Sexton is an example of the economic way of thinking at its finest.  And it’s a better response than my own [3] to Krugman’s insistence that a liquidity trap nullifies some of the basic laws of economics.