Strome Business Minute With Dr. Jeff Tanner

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Zombies are the walking dead. Zombie companies are those unable to earn enough to cover their debts three years in a row. They’re already dead, but super low interest rates allow them to borrow money and walk around, sucking up labor and capital that could be better used elsewhere. Moreover, they tend to borrow from weaker banks, further draining the economy. But Denmark’s Central Bank has charged negative interest rates for nearly eight years where zombies have actually declined and the overall level is low compared to other countries. One reason is that there is little reason to stay in business if it’s failing; employees are well-taken care of and owners don’t retain the company debt there, which is so often the case here. To find out more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.