▁and ▁educ ator ▁ ▁References ▁ ▁External ▁links ▁Rank in ▁I SD ▁List ▁of ▁Six - man ▁football ▁stad iums ▁in ▁Texas ▁ ▁Category : Public ▁high ▁schools ▁in ▁Texas ▁Category : E ducation ▁in ▁U pton ▁County , ▁Texas <0x0A> </s> ▁A ▁liquid ity ▁trap ▁is ▁a ▁situation , ▁described ▁in ▁Ke yn esian ▁econom ics , ▁in ▁which , ▁" after ▁the ▁rate ▁of ▁interest ▁has ▁fallen ▁to ▁a ▁certain ▁level , ▁liquid ity ▁preference ▁may ▁become ▁virt ually ▁absolute ▁in ▁the ▁sense ▁that ▁almost ▁everyone ▁pre fers ▁holding ▁c ash ▁rather ▁than ▁holding ▁a ▁deb t ▁which ▁yields ▁so ▁low ▁a ▁rate ▁of ▁interest ." ▁ ▁A ▁liquid ity ▁trap ▁is ▁caused ▁when ▁people ▁ho ard ▁c ash ▁because ▁they ▁expect ▁an ▁ad verse ▁event ▁such ▁as ▁def lation , ▁ins u fficient ▁aggregate ▁demand , ▁or ▁war . ▁According ▁to ▁main stream ▁theory , ▁among ▁the ▁characteristics ▁of ▁a ▁liquid ity ▁trap ▁are ▁interest ▁rates ▁that ▁are ▁close ▁to ▁zero ▁and ▁changes ▁in ▁the ▁money ▁supply ▁that ▁fail ▁to ▁translate ▁into ▁changes ▁in ▁the ▁price ▁level . ▁ ▁Origin ▁and ▁definition ▁of ▁the ▁term ▁John ▁May n ard ▁Ke yn es , ▁in ▁his ▁ 1 9 3 6 ▁General ▁Theory , ▁wrote ▁the ▁following : ▁There ▁is ▁the ▁possibility ... that , ▁after ▁the ▁rate ▁of ▁interest ▁has ▁fallen ▁to ▁a ▁certain ▁level , ▁liquid ity - pre ference ▁may ▁become ▁virt ually ▁absolute ▁in ▁the ▁sense ▁that ▁almost ▁everyone ▁pre fers ▁c ash ▁to ▁holding ▁a ▁deb