The Epoch Times A zombie is an aberration, something that should not exist in the real world. Yet in modern economies, such creatures do exist.
Zombies were introduced to the economic jargon by Ricardo Caballero, Takeo Hoshi, and Anil Kashyap in their article, âZombie lending and depressed restructuring in Japanâ in 2008, where they named the unprofitable and indebted yet still operating firms in Japan as âzombie companies.â They found that, after the financial crash of the early 1990s, large Japanese banks kept money flowing to otherwise insolvent borrowers, aka zombies. The reason for this was that these large banks themselves were in dire straits…
