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All about bank(panic)s and the implications for policy

Exchanges

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The Importance of Equity Capital Ratios

I think at this leads, for example, there's really no capital necessary to fund your growth in government securities. The risk rates of zero are very low. So I just think it's focused on the leverage ratio, focus on how much equity you have to absorb the unexpected. It's always the unexpected that becomes the crisis problem.

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