Zombification and monetary policy

According to a Creditreform study, almost 20 percent of companies in Germany would not survive an interest rate increase of 3 percent or an interest rate increase of 1.5 percent with a simultaneous drop in profits of 20 percent.

It is questionable whether ECB President Mario Draghi will initiate a turnaround in interest rates worthy of the name if it means that 20 percent of companies in Germany alone could go bankrupt.

Please note: This study is available in German only.

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