Authored by Frank Shostak via The Mises Institute,
Some economists such as a Nobel Laureate Paul Krugman are of the view that if the US were to fall into a liquidity trap the US central bank should aggressively pump money and aggressively lower interest rates in order to lift the rate of inflation. This Krugman holds will pull the economy from the liquidity trap and will set the platform for an economic prosperity. In his New York Times article of January 11, 2012, he wrote,