In assessing the appropriate frameworks for financing infrastructure projects, it is useful to consider separately two distinct types of project. The first type is projects that produce “public goods”; which can be defined as goods for which it is not normally optimal or even possible to charge consumers for their use.
The weak corporate governance of borrowing firms, coupled with a weakening of the monitoring function of main banks which were relying on land as collateral, gave rise to a positive association of asset price rise with higher leverage ratio. Yet at that time, core CPI (excluding fresh food) was close to zero.