1.   This is known as the liquidity trap.

2.   The liquidity trap occurs where the demand for money becomes perfectly interest-elastic at some very low interest rate.

3.   In retrospect, it might be argued that the significance of the liquidity trap was over-emphasised.

4.   Modern econometric work has found no conclusive evidence for the existence of a liquidity trap.

5.   Among professional economists, Krugman was not the first to conclude that Japan had fallen into a liquidity trap.

6.   A financial cleanup is necessary, says Krugman, but it is unlikely to bootstrap Japan out of its liquidity trap by itself.