Killing off the zombies is not enough

For vampires, the weakness is garlic. For werewolves, it's a silver bullet. And for zombies? Perhaps a rise in interest rates will do the trick.

Economists have worried about "zombie companies" for decades. Timothy Taylor, editor of the Journal of Economic Perspectives, has followed a trail of references back to 1989, noting sightings of these zombies in Japan from the 1990s, and more recently in China. The fundamental concern is that there are companies which should be dead, yet continue to lumber on, ruining things for everyone.

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A version of this article appeared in the print edition of The Straits Times on February 26, 2018, with the headline 'Killing off the zombies is not enough'. Print Edition | Subscribe