firms, productivity, supply, demand, debt, investment, growth
The Japanese ‘lost decade’ refers to a period in the 1990s during which Japan experienced stagnation or, in other words, low economic growth and low, sometimes negative, inflation. When researching the causes of Japan’s stagnating economy, economists discovered that large Japanese banks engaged in sham loan restructuring that kept providing credit to firms that were otherwise insolvent. These firms were unable to cover the costs of servicing debt from their current profit and economists coined a particular name to refer to such businesses — zombie companies.
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