The Liquidity Trap and the Aporias of Modern Macroeconomics

This article provides an in-depth theoretical analysis of the liquidity trap phenomenon in the context of contemporary macroeconomics. The author demonstrates that traditional monetary policy instruments, such as interest rate manipulation, encounter fundamental barriers in extreme situations. The text provides a detailed discussion of the IS-LM model and transmission mechanisms, linking them to labor market dynamics through the wage-setting and price-setting relationships. The reader will also find an explanation of the AS-AD model and the concept of the natural rate of unemployment. The entire text is embedded in a current of economic epistemology that questions the effectiveness of purely technical models in the face of complex institutional conditions. This is essential reading for those seeking to understand why monetary neutrality and aggregate demand require a new perspective in an era of global economic turbulence.