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Although the banks need to ensure that they can avoid default on the part of their borrowers, should they more often balance their sheets to
Although the banks need to ensure that they can avoid default on the part of their borrowers, should they more often balance their sheets to be compliant rather than just when heading into a recession? Although this would lower the effect of the multiplier when the economy is strong, it wouldn't cramp the economy as much when it isn't.How can this be explained?
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