give rise to persistent liquidity trap episodes. There is no straightforward recipe for enhancing welfare in this economy … less concerned with government spending stabilization than society eliminates expectations-driven liquidity traps …

We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a … liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high … credit supply. Liquidity requirements also depress banks' profitability, though some of the regulatory costs are passed on to …