Editing Deflation (section)

===Special borrowing arrangements===
When the central bank has lowered nominal interest rates to zero, it can no longer further stimulate demand by lowering interest rates. This is the famous [[liquidity trap]]. When deflation takes hold, it requires "[[quantitative easing|special arrangements]]" to lend money at a zero nominal rate of interest (which could still be a very high ''real'' rate of interest, due to the ''negative'' inflation rate) in order to artificially increase the money supply.