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, labor, and energy for Germany, Japan, and the USA since 1960. The computed cointegration vectors represent the output …
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This paper explains the emergence of liquidity traps in the aftermath of large-scale financial crises, as happened in the US 1930s, Japan 1990s and recently in the US and Europe. The paper introduces a new balance sheet channel that links equity capital to the risk-free interest rate. When...
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