The episode is representative of the key but swinging and ambivalent relationship between cutting-edge economic research and long established central banking principles.
Simulations by the OECD suggest that reducing the share of capital of non-viable firms in Greece to the minimum across OECD countries would be associated with a gain in investment for a typical viable firm of 4.7% per annum. This number is economically very significant. It is indicative of the potential gains of NPL resolution for corporate investment, aggregate productivity and long-term economic growth.