Inflation and Bankruptcy are closely related concepts. As inflation continues to increase, the dollar will be worth less and the effective cost of an item will rise. As a result, individuals should consider exiting the stock market, or at least minimizing their stock portfolios. As the value of the dollar drops, conversion of stock to cash may not be a wise move. However, conventional wisdom recommends investing in precious metals. If an individual is unable to sell their stocks for cash, they may be able to buy precious metals such as gold or silver.
The empirical literature on bankruptcy rates is largely classified into three categories. First, the oldest part focuses on the links between macroeconomic variables and aggregate failure rates. Results of this literature can be interpreted as evidence about the transmission mechanisms between these variables and bankruptcy rates. Similarly, the earliest bankruptcy model was developed by Altman (1983).
The global economic crisis has left a print on history. It caused a breakdown of industries and led to widespread instability and bankruptcy in the banking system. The weak international market position of the country affected the fortune and financial situation of ordinary people. Government mistakes and the high inflation rate led to total economic ruin for millions of people around the world. The global economy is still recovering from this crisis, but the consequences are still unimaginable. It will be the memory of a generation to come.
