And do banks and hedge funds suck up too much IQ, diverting this resource from more productive enterprises?

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But myriad funds are squirrelled away from the official budget: in ministries and state enterprises, and with provincial and local governments.

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However, this pattern appears also to have resulted from the fact that some large lenders in the federal-funds market, notably government-sponsored enterprises such as Fannie Mae and Freddie Mac, are ineligible to receive interest on balances held at the Fed, and thus they have an incentive to lend in that market at rates below what the Fed pays banks.

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