The simple definition of a depression is a large scale recession that lasts an extended period of time. Some define a depression as a scenario where real GDP drops by over 10%. Another way to differentiate it from a recession is the period of time. Recessions are said to typically last one year while an economic depression lasts several years.
Depression
Related Terms
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Broadly speaking, a recession is popularly defined as two consecutive quarters of negative GDP growth. Since GDP measures the total level of goods and services produced during the period, it is...
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The Sahm Rule is a heuristic measure that has been shown to be effective in predicting recessions in the United States.
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An earnings recession refers to a sustained period of declining corporate profits,
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GDP stands for Gross Domestic Product. GDP is the total value of the goods and services produced in a country over a specified period. It is one of the most comprehensive and closely watched...
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Small-scale asset purchases (SSAPs) are a monetary policy tool used by central banks to stimulate economic growth and maintain price stability.