In a liquidity trap, the central bank may be unable to stimulate demand through traditional monetary policy tools such as lowering the policy rate or increasing the money supply. This can lead to a persistent slowdown in economic activity, as well as deflation (falling prices) if the demand for goods and services is weak. To address a liquidity trap, central banks may need to rely on alternative measures such as unconventional monetary policy tools (such as quantitative easing) or the government may make more active use of fiscal policy (through changes in government spending or taxes and government borrowing).