Neil Lancastle
Figure 15: Bank Bailouts with Bank Reserves Rule and 'Sticky' Wages
The model parameters are:
| Description | Value |
| Bank (reserves) | 70 |
| Household loans | -100 |
| Business loans | -100 |
| Wages rate (as % buiness loans) | 25% |
| Bank loan rate | 4% |
1. Bank bailouts are spent at 25% annually, until reserves = 20
2. Sticky wages = Business loans *0.25, or 25, whichever is greater
