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Can China Avoid a Liquidity-Trap Recession? Some Unintended Consequences of Macroprudential Policies, No. 24-12

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Can China Avoid a Liquidity-Trap Recession? Some Unintended Consequences of Macroprudential Policies, No. 24-12

DATE: April 2024

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ABSTRACT: Efforts to avoid a liquidity trap could ultimately cause one to happen. In this article, I examine how this occurs, what implications such actions have for other macroeconomic policies and what else can be done to avoid liquidity traps.

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Federal Reserve Bank of Richmond. "Can China Avoid a Liquidity-Trap Recession? Some Unintended Consequences of Macroprudential Policies, No. 24-12," Economic Brief (April 2024). https://fraser.stlouisfed.org/title/6034/item/666985, accessed on May 14, 2025.

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