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by lebenskuenstler on February 28th, 2009

lebenskuenstler

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What is the difference between a recession and a depression? know what a recession is: Three monthly GNP in the red, Is that right?i

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  • by iwnit on March 1st, 2009

    iwnit

    "Depression (economics), an economic downturn more severe than a recession"
    Source and further information:
    http://en.wikipedia.org/wiki/Depression


    1) "In economics, the term recession generally describes the reduction of a country's gross domestic product (GDP) for at least two quarters. The usual dictionary definition is "a period of reduced economic activity", a business cycle contraction.

    The United States-based National Bureau of Economic Research (NBER) defines economic recession as: "a significant decline in [the] economic activity spread across the country, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales." The NBER's Business Cycle Dating Committee is generally seen as the authority for dating US recessions. Academic economists, policy makers, and businesses all usually refer to recessions as determined by the NBER."
    Source and further information:
    http://en.wikipedia.org/wiki/Recession


    2) "In economics, a depression is a sustained, long downturn in one or more economies. It is more severe than a recession, which is seen as a normal downturn in the business cycle.

    Considered a rare but extreme form of recession, a depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression."
    Source and further information:
    http://en.wikipedia.org/wiki/Depression_(economics%29


    3) Further information:
    - "Recession? Depression? What's the difference?":
    http://economics.about.com/cs/businesscycles/a/depressions.htm
    - "Recession Versus Depression
    Descriptions that Define the Difference Between Them.":
    http://americanaffairs.suite101.com/article.cfm/recession_versus_depression

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