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(On the other hand, how do we know that banks will not hold riskier assets if they are equity financed
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MacroMania

https://andolfatto.blogspot.com/2016/05/?m=1
(On the other hand, how do we know that banks will not hold riskier assets if they are equity financed

MacroMania

https://andolfatto.blogspot.com/2017/11/
This is consistent with what we would expect if inflation expectations are stable