The paper explores the question of why modern macroeconomics ignores the financial sector in its analysis despite Keynes's crucial work on the link between expectations in financial markets and the economy's ability to restore full employment through price mechanism. It explores the evolution of the concept of liquidity trap in macroeconomics text-books and indicates the dilution in it over the decades. Further, the theoretical necessity of efficient market hypothesis for modern microeconomics to ignore the financial sector is elaborated. Policy implications about the economies in general, and the financial sector in particular are highlighted.