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New at Reason: Anthony Randazzo on Zombie Businesses and the Bailout
Twenty years
ago, Japan's economy was plagued by struggling markets, liquidity
concerns, and frozen credit. In response, Japan tried bailing out
its banks, investing in infrastructure, and propping up "zombie
businesses," firms that would have failed without government
intervention. And as the Reason Foundation's Anthony Randazzo
writes, unless American policymakers learn from the failures of
Japan's response, we will suffer the same zombie fate.
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