From Capital and Production (1934), Richard Strigl:
During the downturning segment of the cycle, the situation is such that credit for investment will be refused. With its supply of credit, the central bank will encounter a rejection of credit-taking by the economy. We have already given two reasons for this. On the one hand, the psychological conditions necessary for the investment of money into durable investments will not be present. There will be general unrest in the economy. On the other hand, the relationship of prices and the general tendency of price development will stand in the way of investment activity. The repudiation of credit will, however, not be general. Even in this stage of the cycle there is a very significant demand for credit, namely the demand by those who are forced to liquidate, to make emergency sales or to cease production due to a lack of capital—a demand for which any credit means at least the momentary avoidance of losses and perhaps even the potential for later improvements. However, satisfying this demand implies delaying the liquidation of the crisis, lengthening and strengthening it. For it is essential to this situation that a significant demand for credit by those who would like to work towards continuing the boom, that is, an “unhealthy” demand for credit, exists along with a significantly reduced demand for new sound investments….
The call for a crisis policy is usually a call for the stimulation of production during a downswing. However, here crisis policy can lead to more general questions regarding economic policy. Whether or not it might earn a justification from any other standpoint, from the point of view of ameliorating the results of the crisis and preparing for a new upswing, everything which hampers the adjustments of economic magnitudes or impairs economic success can only be judged negatively. pp. 155-157