With a HT to Justin Fox of the Curious Capitalist, he references this article by James Surowiecki regarding the adjustment times of zombie banks and zombie companies in Japan. He estimates that 30% of Japanese companies were being propped up by the banking system because these companies could not adapt.
So, if think about the constraints caused by slow adaption of the financial sector vs constraints in other distribution networks, we can say that only 30% the prolongation of the problem was caused liquidity transmission. That is within a reasonable error to the estimate obtained by this research which measured 10-15% of total constraints caused by the liquidity sector.
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