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Bank of Canada report mentions zombies

May 16, 2013

WSJ: “Bank of Canada Warns of … Zombies” by Nirmala Menon:

It’s not often you hear central banks warn of zombies. But the Bank of Canada did just that Thursday, evoking the undead to warn of the perils of keeping interest rates low for long.

and

Bank of Canada analysts Eric Santor and Lena Suchanek said in a report examining the costs of unconventional monetary policies. …

“These zombie firms/banks would impede the needed restructuring of the economy,” according to the analysts … zombies are limiting competition.

Concluding:

The thinking about zombie firms could just as well apply to consumers, some of whom are likely being kept afloat only by ultra-low rates.

The report quoted is “Bank of Canada Review Spring 2013”

See more ZombieLaw Canada

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