U.S. Zombie Firms: How Many and How Consequential?

Giovanni Favara, Camelia Minoiu and Ander Pérez-Orive
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Ander Pérez-Orive: https://www.federalreserve.gov/econres/ander-perez-orive.htm

No 2021-07-30-2, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: The unprecedented fiscal and monetary policy support in the wake of the COVID-19 pandemic has brought to the fore concerns that cheap credit could fuel the financing of zombie firms—that is, firms that are unable to generate enough profits to cover debt-servicing costs and that need to borrow to stay alive. Many observers have recently commented that zombie firms may crowd out lending to productive firms and erode the strength of the U.S. economy.

Date: 2021-07-30
New Economics Papers: this item is included in nep-cwa, nep-isf and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2021-07-30-2

DOI: 10.17016/2380-7172.2954

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