Richard Koo’s Holy Grail summary

Won’t go deep into it, but essentially: Japan in 90’s was in what he terms a ‘balance sheet’ recession, where corporates have damaged balance sheets due to asset price plunging, but nominal debt remains the same. So they redirect all their free cash flow (this is contingent on the ability to keep selling goods, asContinue reading “Richard Koo’s Holy Grail summary”