Liquidity Trap in the CES Framework
"Monetary Policy and the Critical Friction Threshold
Impact Score
Score Reasoning
- Importance
- Important application of CES regime diagram to monetary policy. Liquidity trap as T>T* supercritical region is a clean structural characterization.
- Novelty
- New connection: liquidity trap derived from CES effective curvature collapse. Structural rather than ad hoc characterization.
- Quality
- Clear theorem statement, good critical threshold characterization. Well-motivated connection to conventional macro.