Credit is the backbone of capitalism because credit allows allocating resources efficiently to economic activities. For the case of distress, a bankruptcy regime is established which allows reviving viable but financially distressed businesses and to liquidate structurally distressed businesses...

Abstract Credit is the backbone of capitalism because credit allows allocating resources efficiently to economic activities. For the case of distress, a bankruptcy regime is established which allows reviving viable but financially distressed businesses and to liquidate structurally distressed...