The Macroeconomics of corporate Debt: Causes and Consequences of the corporate debt overhang Ghent University
Following a decade of low interest rates, firm leverage has increased substantially. This structural rise in firm leverage, aggravated by the COVID-19 crisis, threatens financial stability and might lead to another lost decade of low productivity. While household leverage has attracted extensive research after the Great Financial Crisis, firm leverage dynamics remain a blind spot of macroeconomics. Studies on the drivers of firm leverage fail ...