The Healing Powers Of Restructuring

In the past year and a half since a financial crisis began to sweep the globe, central bankers have cut interest rates some 73 times. Governments opened the monetary taps to flood their economies with credit in hopes of reflating their way out of disaster or, in the case of the U.S. and Europe, avoiding it entirely. Yet liquidity in and of itself may not be sufficient to regain global growth. Japan, mired in a liquidity trap, shows that even zero interest rates will not spur growth.

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