Death

Publisher Website
Google Scholar
Abstract
Bankruptcy law is an institution that both defines failure and then treats it; it is the basic legal vehicle through which market economies impose hard budget constraints and weed out unprofitable or inefficient firms. As the current crisis deepens, the terms and procedures of bankruptcy law will unfortunately become increasingly relevant for insolvent firms and overly indebted individuals. Depending on the depth and length of this crisis, the failure of the economy to perform may eventually undermine political support for the institutional foundations that underpin a market economy (the Polanyi problem). This paper focuses primarily on corporate bankruptcy law, and uses the experience of the Asian Financial Crisis to draw some lessons for how crises reshape bankruptcy law, and what consequences (both expected and unexpected) follow.

This publication has 0 references indexed in Scilit: