In a speech this morning the Governor of the Bank of Canada relied Keynes worrying about what we analyzed down here as a situation of liquidity trap.
Here is the excerpt in question:
".... what Keynes called the "paradox of thrift." It may seem rational at the individual level that individuals want to save more and firms invest less in times of economic uncertainty. However, if this behavior is widespread, it is collectively irrational. Fears of a Recession fueling recession. Similarly, a bank may decide to raise capital in anticipation of increased loan losses during an economic downturn. If all banks do this, they will exacerbate the downturn and increase their potential losses. "
You can read the entire speech here
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