Acharya, Viral V.; Crosignani, Matteo; Eisert, Tim; … - 2023
data on inflation, firms, and banks confirm this mechanism. Markets affected by a rise in zombie credit experience lower … firm entry and exit, capacity utilization, markups, and inflation, as well as a misallocation of capital and labor, which … results in lower productivity, investment, and value added. If weakly-capitalized banks were recapitalized in 2009, inflation …