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Bank Bailouts
Neil Lancastle
This is Figure 3 from Lancastle, N. (2012) 'Circuit Theory Extended: The Role of Speculation in Crises' based on Keen, S. (2010). Solving the Paradox of Monetary Profits.
http://www.economics-ejournal.org/economics/journalarticles/2012-34
If banks maintain their reserves and there is no wage policy, the model suggests that a bailout has no impact on total spending.