In Japan, for instance, corporate cash balances are bigger than the capitalisation of the Tokyo Stock Exchange, which, until April this year, was the second most valuable stock market in Asia. Photo: Reuters
Opinion
Opinion
Macroscope
With a global recession looming, will cash-rich corporations swoop to the rescue?
- Central banks and governments are stretched to the limit while big businesses sit on cash mountains that dwarf national economies. In a downturn, they can make investments and retain staff to shore up consumption and the economy. But will they do it?
In Japan, for instance, corporate cash balances are bigger than the capitalisation of the Tokyo Stock Exchange, which, until April this year, was the second most valuable stock market in Asia. Photo: Reuters