Low interest rates: There are zombies everywhere

The very low interest rates in OECD countries ha ve led to a widespread appearance of zombies: Zombie firms, which are inefficient, low-productivity companies that the low interest rates prevent from disappearing; Zombie banks (particularly in Europe and Japan), whose profitability has fallen as a result of the low level of interest rates; Zombie countries, whose fiscal solvency is ensured only by the low level of interest paid on their government bonds and which have run up excessive debt because of the low interest rates. The spread of zombies shows the weakening of OECD countries’ economy.