zombie economy
Word Rarity
Rare
Frequency: Zipf frequency 3.89 in modern English
33
Scrabble Score
13
Letters
5
Syllables
9
Unique Chars
Meaning
noun
A national economy with a high proportion of zombie companies and zombie banks, as happened in Japan during its lost decades.
Example Sentences
- "It will be tempting for the US and Europe to engage in some financial repression in the coming years, using various means to force interest rates lower. Not only will it make America’s addiction to debt seem manageable, it will help ease the transition to an AI economy, Cheap debt will allow more zombie companies, which would normally be displaced by technology, to survive. […] Some of America’s current economic problems are the result of past forays into yield-curve control. The Federal Reserve’s QE during the pandemic is still causing problems in the housing market — it artificially lowered mortgages rates, which then went up when inflation returned. Meanwhile, the Treasury is losing money on its bond portfolio, and the bond market is experiencing dislocations as the Fed reduces its large post-pandemic balance sheet. All this is the result of only a few years of trying to control the yield curve. If it becomes normal policy, expect worse distortions and more threats to Fed independence. Japan’s policies, followed for decades, created thousands of zombie companies. The danger for the US is that financial repression, pursued on a large scale, would create a zombie economy."