During and after the global financial crisis, the Bank of Canada provided banks with large amounts of
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During and after the global financial crisis, the Bank of Canada provided banks with large amounts of liquidity. Banks’ excess reserves increased sharply, while credit extended to households and firms decreased sharply. Comment on the effectiveness of the bank lending channel during this time.
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With an increase in bank reserves the bank lending channel predicts that deposits and loans will inc...View the full answer
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Related Book For
The Economics of Money Banking and Financial Markets
ISBN: 978-0321785701
5th Canadian edition
Authors: Frederic S. Mishkin, Apostolos Serletis
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