Farrokh Langdana: Interest rates and the liquidity trap

Tuesday, August 18, 2015

Professor Farrokh Langdana discusses the role of interest rates in economic growth and the hazards of the “liquidity trap.” A professor in the Finance and Economics Department at Rutgers Business School, Langdana is also director of the globally ranked Rutgers Executive MBA Program. His areas of specialization include monetary and fiscal theory, international trade and global macroeconomic policy.  His research deals with macroeconomic experimentation and the role of stabilization policy in an expectations-driven economy.

  • Introduction. 00:05
  • The role of interest rates on economic activity and the liquidity trap. 00:23
  • Why do central banks adjust interest rates? 01:00Why are lower interest rates no longer the panacea of economic growth? 02:28
  • What is a liquidity trap? 03:49
  • What are the dangers of a liquidity trap? 04:37
  • What are the effects of a liquidity trap on the stock market? 05:28


Learn more about Professor Langdana.

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