Japan has a long history of easy credit that’s been blamed for keeping "zombie” firms alive, which "bring down the potential growth rate and can even sap the impact of monetary easing.”
Japan last year had the fewest bankruptcies in a half century. That’s how well the government’s response to the pandemic has worked in keeping businesses afloat and people employed. But economists warn there may be a darker side. Zero-interest loans and subsidies may have also helped prop up firms that…