In the Basic New Keynesian model, when there is a liquidity trap, if the central bank promises higher inflation in the future, then

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In a liquidity trap, nominal interest rates are at or near zero, limiting the central bank's ability to stimulate the economy through traditional monetary policy. By promising higher future inflation, the central bank can influence expectations, leading to lower real interest rates, which can stimulate demand, increase output, and raise inflation.

In the Basic New Keynesian Model, When There Is a Liquidity