The economic rough patch of the past few years inevitably inspires comparisons to and reconsiderations of last century's big economic calamity. Due to accelerating productivity, output was increasing faster than demand, and prices fell sharply. It was this, more than anything else, which led to rapidly declining incomes. Manufacturers had to lay off workers, which further diminished demand for industrial produce, driving down prices even more. Before long, this vicious circle affected the entire national economy.” 

Write a comprehensive note on the above passage by understanding what it is referring to and enlighten its application in credit risk management context.

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Credit risk management can be defined as a practice of mitigating losses It is done by und... View the full answer