Disorganization Due to Forbearance of Debt Restructuring
- Topics:
- Bankruptcies,
- Commercial Lending
- Source:
- University of Tokyo
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Overview: This paper proposes a simple model of persistent stagnation due to the forbearance of restructuring corporate-debt overhang (Debt Forbearance). The purpose of this model is to explain the disappointing performance of the Japanese economy in the 1990s, and to point out the macroeconomic inefficiency possibly caused by the forbearance of corporate-debt restructuring in ordinary business cycles.
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Format: PDF | Size: 270KB | Date: Mar 2001 | Pages: 37



