Home  Journals  Finance and Credit  16(400) - 2010 April

Bankruptcy: economic-theoretical aspect

Available online: 16 April 2010

Subject Heading: Bankruptcy

JEL Classification: 

The causes of bankruptcy are studied in the article based on the works of A. Smith, K. Marx, I. Fisher, J. Keyens, and B. Bernanke. One of the hypotheses is that there is a correlation between the level of bankruptcy in the economy and the stages of economic cycle. Recession is accompanied by the lack of liquidity which leads to the growth of the number of bankruptcies. In order to maintain solvency firms and householders cut expenditures on long time assets what favors the crises.

Keywords: insolvency, bankruptcy, cycle, economy, recession, crises, liquidity

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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