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This paper improves the analysis of the role of financial frictions in the transmission of monetary policy, by bringing together the borrowers' balance sheet channel with an additional channel working through bank capital, considering capital adequacy regulations and households' preferences for...
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This is a survey of the literature on liquidity provision through banks. I first formulate the basic model underlying … provision through banks and markets. Then I turn to liquidity provision on the asset side of banks' balance sheets and conclude …
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