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With the great recession, FED bought toxic assets from banks and increased its balance sheet by six fold. TCMB did almost the same with huge
With the great recession, FED bought toxic assets from banks and increased its balance sheet by six fold. TCMB did almost the same with huge credit expansion in the recent years and forced banks to buy government bonds. Though this policy enabled very high profits, how would an increase of interest rates effect the insolvency of the banks. 4
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