An economy where new business formation is radically more difficult so the economy is far slower to adapt so there is mass unemployment and human misery.
Go talk to someone who actually runs a real business. Especially a business with capital costs. Ask them if they could run it without access to credit. The answer is no.
Why would capital requirements for capital intensive businesses be so high when the equipment they are trying to buy will be cheap?
If they need to buy lots and lots of equipment right now, they could issue a bond, investors looking to make a dime will lend. Since inflation is low because of no speculation, interest rates would be low as well.
The one big caveat I see is slow growth but that's exactly what I'm looking for. Slow sustainable growth directly proportional to labor.