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decompose the welfare effects of bank capital regulation to demonstrate the effects of exuberance and its interaction with …
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We evaluate the effects of post-crisis liquidity regulation on the U.S. banking system. We find that regulated banks …. However, some liquidity transformation has migrated to intermediaries not subject to liquidity regulation, such as small banks … liquidity regulation and create potential fragilities in the financial system. We study policy remedies to mitigate these …
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