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Leo Lewis

Japan must start culling its zombie companies soon

The Bank of Japan’s decision to maintain ultra-loose monetary policy for now merely defers the euthanasia of persistently unprofitable companies.

Leo LewisContributor

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When Haruhiko Kuroda delivered what was probably his last press conference as governor of the Bank of Japan on Wednesday, he claimed success for an institution that now holds a monstrously distended portfolio of government bonds, domestic stocks and unanswered questions.

Critically, after his decade-long adventures in the borderlands of monetary policy, we still do not know whether Kuroda has helped fortify Japan for the grim work of zombie killing.

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    Original URL: https://www.afr.com/policy/economy/japan-must-start-culling-its-zombie-companies-soon-20230119-p5cdqv