U.S. Zombie Firms: How Many and How Consequential?
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.
File(s): File format is text/html https://www.federalreserve.gov//econres/notes/feds-notes/us-zombie-firms-how-many-and-how-consequential-20210730.htm
Part of Series: FEDS Notes
Publication Date: 2021-07-30