DIJ director and economist Franz Waldenberger commented in the current issue of DIE ZEIT (3/21) on the Japanese government’s strategy of artificially keeping so-called “zombie companies” alive through state-guaranteed loans. “The zero interest rate policy ensures that the selection process between productive and unproductive companies weakens.” At the same time, he explained that these subsidies to unprofitable businesses in Japan fulfilled a social function. “It is also about jobs and thus about providing a social safety net,” Waldenberger stressed. The article “Land of Zombies” (in German) can also be read in the online edition here.