▁( through ▁augment ing ▁the ▁mon et ary ▁base ) ▁and ▁has ▁lost ▁control ▁over ▁it . ▁ ▁El abor ation ▁In ▁Ke yn es ' ▁description ▁of ▁a ▁liquid ity ▁trap , ▁people ▁simply ▁do ▁not ▁want ▁to ▁hold ▁b onds ▁and ▁prefer ▁other , ▁non - liqu id ▁forms ▁of ▁money ▁instead . ▁Because ▁of ▁this ▁preference , ▁after ▁converting ▁b onds ▁into ▁c ash , ▁ ▁this ▁causes ▁an ▁incident al ▁but ▁significant ▁decrease ▁to ▁the ▁b onds ' ▁prices ▁and ▁a ▁subsequent ▁increase ▁to ▁their ▁yields . ▁However , ▁people ▁prefer ▁c ash ▁no ▁matter ▁how ▁high ▁these ▁yields ▁are ▁or ▁how ▁high ▁the ▁central ▁bank ▁sets ▁the ▁bond ' s ▁rates ▁( y ield s ). ▁ ▁Post - Ke yn esian ▁econom ist ▁H yman ▁Min sky ▁pos ited ▁that ▁" after ▁a ▁deb t ▁def lation ▁that ▁indu ces ▁a ▁deep ▁de pression , ▁an ▁increase ▁in ▁the ▁money ▁supply ▁with ▁a ▁fixed ▁head ▁count ▁of ▁other ▁[ fin an cial ] ▁assets ▁may ▁not ▁lead ▁to ▁a ▁rise ▁in ▁the ▁price ▁of ▁other ▁assets ." ▁This ▁naturally ▁causes ▁interest ▁rates ▁on ▁assets ▁that ▁are ▁not ▁considered ▁" al most ▁perfectly ▁liquid " ▁to ▁rise . ▁In ▁which ▁case , ▁as ▁Min sky ▁had ▁stated ▁elsewhere , The ▁view ▁that ▁the ▁liquid ity - pre ference ▁function ▁is ▁a ▁demand - for - m oney ▁relation ▁perm its ▁the ▁introduction ▁of ▁the ▁idea ▁that ▁in ▁appropriate ▁circumstances ▁the ▁demand ▁for ▁money ▁may ▁be ▁infinitely ▁el astic