Depression (economics)
In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle.
Considered by some economists to be a rare and extreme form of recession, a depression is characterized by its length; by abnormally large increases in unemployment; falls in the availability of credit, often due to some kind of banking or financial crisis; shrinking output as buyers dry up and suppliers cut back on production and investment; large number of bankruptcies including sovereign debt defaults; significantly reduced amounts of trade and commerce, especially international; as well as highly volatile relative currency value fluctuations, most often due to devaluations. Price deflation, financial crises and bank failures are also common elements of a depression that are not normally a part of a recession.
Read more about Depression (economics): Definitions, Terminology, Occurrence, Regional Depressions Between 1973 and 2002
Famous quotes containing the word depression:
“Mental health data from the 1950s on middle-aged women showed them to be a particularly distressed group, vulnerable to depression and feelings of uselessness. This isnt surprising. If society tells you that your main role is to be attractive to men and you are getting crows feet, and to be a mother to children and yours are leaving home, no wonder you are distressed.”
—Grace Baruch (20th century)