Usually means: Interest rates low, spending stalled.
Definitions Related words Mentions
We found 8 dictionaries that define the word liquidity trap:

General (3 matching dictionaries)
  1. liquidity trap: Wiktionary
  2. liquidity trap: Dictionary.com
  3. Liquidity trap: Wikipedia, the Free Encyclopedia

Business (5 matching dictionaries)
  1. liquidity trap: Glossary of research economics
  2. Liquidity trap: Deardorff's Glossary of International Economics
  3. Liquidity Trap: Investopedia
  4. Accounting, Business Studies and Economics Dictionary (No longer online)
  5. BusinessDictionary.com (No longer online)

Definitions from Wiktionary (liquidity trap)

noun:  (economics, in particular New Keynesian economics) circumstance when nominal interest rates are near or at zero and circulating additional money doesn't lower interest rates.

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