The UK government introduced lending targets for the five major UK banks after the global financial crisis.

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The UK government introduced lending targets for the five major UK banks after the global financial crisis. Use the simple model of the macro-economy and the financial system to discuss this policy. Make sure you refer to:

a. Whether you think the policy makes economic sense.

b. Are there any potential pitfalls with the policy?

c. How could it affect stabilization policy?

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