B.B. writes: In “National Income and the Price Level,” Martin Bailey discussed the issues of the liquidity trap and secular stagnation. He observed that at a zero real interest rate, it would be profitable to level the Rocky Mountains and fill in the Gulf of Mexico. The land created would have a rate of return over zero. Also, replacing all steel with stainless steel would pay off.
Gauti Eggertsson, a NY Fed Economist has done considerable research on Great Depression, Liquidity Trap and Zero-bound interest rates. It is fascinating to see so many economists still doing so much research on great depression. With the crisis, I am sure more is to follow. No wonder, Fed Chairman Bernanke in his book on Great Depression said:
We do not yet have our hands on the Grail by any means, but during the past fifteen years or so substantial…
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Utopia, you are standing in it! 
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