(MENAFN) Following the financial crisis, central banks and governments' efforts to boost economic growth by purchasing up assets inadvertently reallocated capital to weakening firms, as the latest researches revealed.
This kept those companies afloat and goosed employment, attaining a short-term goal, but it prevented a shift away from these unsuccessful firms to those companies that could've been more productive today.
These ineffective businesses are called zombie companies, which basically preserve inefficiencies and dampen enterprise, and they're now holding back firms that would help drive productivity progress.
All in all, central banks and governments all around the globe should allow inefficient zombie companies burn and fade away, because whatever comes next will be most definitely much better.
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