Acharya, Viral V.; Lenzu, Simone; Wang, Olivier - National Bureau of Economic Research - 2021
-term economic outcomes. When firms are hit by small negative shocks, conventional monetary policy can restore efficient bank lending … forbearance towards banks to stabilize the economy. Aggressive accommodation runs the risk of introducing zombie lending and a … rates and excessive forbearance, due to congestion externalities imposed by zombie lending on healthier firms. The resulting …