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When economic activity is temporarily unexpectedly reduced, companies start running out of cash / working capital. Injecting extra liquidity means that compani
by PeterisP 7y ago
When economic activity is temporarily unexpectedly reduced, companies start running out of cash / working capital.
Injecting extra liquidity means that companies are able to get short-term loans to cover expenses and continue functioning, instead of going bankrupt during the chaos (which would also facilitate bankrupting their suppliers and creditors).