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The Non Zero Lower Bound Lending Rate and the Liquidity Trap

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Figure

Figure 1. The Bank Liquidity Trap
Figure 2. In a BLT Banks will not Shift Loan Supply Outwards
Figure 3. Increase in Interest on Excess Reserves
Figure 4. Bank liquidity preference vis-à-vis loan rate – monthly data 1980:1–2006:12 (left panel); 2007:1-2012:5 (right panel)
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