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Inside Lending with i = 1,, N and t = 1,, T and where N is the number of banks, x it the loans, deposits or liquidity of bank i in quarter t, MP t the monetary policy indicator, y it the real GDP, t the inflation rate, S it the size, Liq it the liquidity and Cap it the capitalization.. The baseline equation is that on lending. loan growth is regressed on changes of the interest rate controlled by.

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