depression
a significant downturn in economic activity over a sustained period of time
A depression can be described as a severe and/or prolonged (at least 3 years) recession. Therefore, a depression and a recession share similar characteristics, only they are much more severe in a depression: at least 10%-drop in Gross Domestic Product, persistent mass unemployment, little investment spending, sustained drop in capacity utilization, contraction of credit, numerous business failures, and deflation (falling prices).
Read more in the glossary entry about recession.
Find this term in Shortoncashflow’s following entry:
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3 people have left comments
Does the Media Want to Hide the Economic Truth?–Short On Cashflow said on August 16, 2009, 12:57 pm:
[...] what will the real outcome be? Doom, gloom and depression or a real recovery? We may soon see! (3) Comments Permalink [...]
recession–Short On Cashflow said on August 16, 2009, 1:00 pm:
[...] If the recession is severe (GDP down by 10%) or prolonged (three or four years), it is called a depression. [...]
recovery–Short On Cashflow said on August 17, 2009, 5:26 am:
[...] RSS 2.0 feed. You can leave a response, or trackback from your own site. « recession depression [...]
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