Zombie Credit and (Dis-)Inflation: Evidence from Europe

IF 7.6 1区 经济学 Q1 BUSINESS, FINANCE Journal of Finance Pub Date : 2024-04-11 DOI:10.1111/jofi.13342
VIRAL V. ACHARYA, MATTEO CROSIGNANI, TIM EISERT, CHRISTIAN EUFINGER
{"title":"Zombie Credit and (Dis-)Inflation: Evidence from Europe","authors":"VIRAL V. ACHARYA,&nbsp;MATTEO CROSIGNANI,&nbsp;TIM EISERT,&nbsp;CHRISTIAN EUFINGER","doi":"10.1111/jofi.13342","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>We show that “zombie credit”—subsidized credit to nonviable firms—has a disinflationary effect. By keeping these firms afloat, zombie credit creates excess aggregate supply, thereby putting downward pressure on prices. Granular European data on inflation, firms, and banks confirm this mechanism. Markets affected by a rise in zombie credit experience lower firm entry and exit, capacity utilization, markups, and inflation, as well as a misallocation of capital and labor, which results in lower productivity, investment, and value added. If weakly capitalized banks were recapitalized in 2009, inflation in Europe would have been up to 0.21 percentage points higher post-2012.</p></div>","PeriodicalId":15753,"journal":{"name":"Journal of Finance","volume":"79 3","pages":"1883-1929"},"PeriodicalIF":7.6000,"publicationDate":"2024-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Finance","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/jofi.13342","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0

Abstract

We show that “zombie credit”—subsidized credit to nonviable firms—has a disinflationary effect. By keeping these firms afloat, zombie credit creates excess aggregate supply, thereby putting downward pressure on prices. Granular European data on inflation, firms, and banks confirm this mechanism. Markets affected by a rise in zombie credit experience lower firm entry and exit, capacity utilization, markups, and inflation, as well as a misallocation of capital and labor, which results in lower productivity, investment, and value added. If weakly capitalized banks were recapitalized in 2009, inflation in Europe would have been up to 0.21 percentage points higher post-2012.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
僵尸信贷与(失)通胀:欧洲的证据
我们的研究表明,"僵尸信贷"--向无法生存的企业提供的补贴信贷--具有抑制通胀的作用。通过维持这些企业的生存,"僵尸信贷 "创造了过剩的总供给,从而给价格带来下行压力。欧洲有关通胀、企业和银行的详细数据证实了这一机制。受 "僵尸信贷 "增加影响的市场,企业进入和退出、产能利用率、标价和通胀率都会下降,资本和劳动力配置不当也会导致生产率、投资和附加值下降。如果在 2009 年对资本薄弱的银行进行资本重组,2012 年后欧洲的通胀率最多会上升 0.21 个百分点。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
Journal of Finance
Journal of Finance Multiple-
CiteScore
12.90
自引率
2.50%
发文量
88
期刊介绍: The Journal of Finance is a renowned publication that disseminates cutting-edge research across all major fields of financial inquiry. Widely regarded as the most cited academic journal in finance, each issue reaches over 8,000 academics, finance professionals, libraries, government entities, and financial institutions worldwide. Published bi-monthly, the journal serves as the official publication of The American Finance Association, the premier academic organization dedicated to advancing knowledge and understanding in financial economics. Join us in exploring the forefront of financial research and scholarship.
期刊最新文献
The Global Credit Spread Puzzle Bank Funding Risk, Reference Rates, and Credit Supply The Disappearing Index Effect Decentralized Exchange: The Uniswap Automated Market Maker Test Assets and Weak Factors
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1