Andrew Groves Quotes
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With weak balance sheets, banks tend to continue lending unprofitable businesses and leave them existing.
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Well-functioning financial systems are important in achieving sustained economic growth. They play a crucial role in channeling household savings into the corporate sector and allocating investment funds among firms.
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We cannot say for sure that the current recovery will be durable and strong enough to push the economy back to a sustained growth path.
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Thus, the questions we should ask here are what makes the current economic upswing different from the past two recoveries, and whether such differences are sufficient for the economy to reach the sustained growth path.
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They emphasize the viewpoint that the protracted economic stagnation in Japan derives from incomplete economic adjustments to significant changes in relative prices.
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