Keynes effect
Keynes effect noun: the phenomenon in which a decrease in price level leads to a decrease in interest rates, provided there's no liquidity trap or interest-unresponsive expenditure.
Noun
Keynes effect (plural Keynes effects)
- The phenomenon in which a decrease in price level leads to a decrease in interest rates, provided there's no liquidity trap or interest-unresponsive expenditure.
Forms of Keynes effect
| plural | Keynes effects |
|---|
Origin of Keynes effect
Named after English economist John Maynard Keynes.
Questions about Keynes effect
- What does Keynes effect mean?
- Keynes effect means the phenomenon in which a decrease in price level leads to a decrease in interest rates, provided there's no liquidity trap or interest-unresponsive expenditure.
- What part of speech is Keynes effect?
- Keynes effect is a noun.
- What is the plural of Keynes effect?
- The plural of Keynes effect is Keynes effects.
Words near Keynes effect in the dictionary
Source and license
Adapted from Wiktionary: Keynes effect (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
Last updated:
Cite this entry: “Keynes effect.” Word.ws, https://word.ws/keynes_effect. Based on Wiktionary, CC BY-SA 4.0.
