One hallmark of a liquidity trap is the creation of scrip.

FORBES: Anatomy of an Economic Meltdown

Washington politicians are pointing the U.S. economy straight into a liquidity trap and instead of a bright economic future, the U.S. is looking at years of high unemployment, weak GDP growth and the possibility of widespread deflation.

FORBES: Goodbye Recovery, Hello Recession

In fact, I view his General Theory as a guide for getting out of a recession or liquidity trap.

FORBES: Supply Side Employment Growth

For the economy as a whole, lots of cash in frightened hands is a liquidity trap.

FORBES

Japan seems to be stuck in a classic liquidity trap: it needs lower real interest rates to boost demand, but because of deflation they are stuck painfully high.

ECONOMIST: The new danger

Recall that a Keynesian liquidity trap occurs at the point when interest rates become so low that cash balances are passively held regardless of their size.

FORBES: Has The Fed Lost Control?