Follow your curiosity

What discovery has been shared with you?

FACTREE gives you something interesting to discover every day — and something worth talking about together.

Start with one fact. Explore it, go deeper, then follow whichever branch catches your imagination.

Choose subjects for a surprise

Exploring any topic

Begin your discovery

Your next discovery is one click away.

Choose one or more subjects above, or leave Any Topic selected and let curiosity decide.

Economics

The Liquidity Trap and Monetary Policy Limits

Quick fact

In a liquidity trap, the opportunity cost of holding cash is almost zero because interest rates are at or near zero, so people choose to keep money rather than invest it.

Why this is interesting

Imagine you are holding a cup of water, and someone pours more water into it—but the cup never overflows. In a liquidity trap, central banks can print money endlessly, yet the economy refuses to wake up.