Economics Question
Author
Discussion

Welshbeef

Original Poster:

49,633 posts

228 months

Tuesday 7th October 2008
quotequote all
Ok here goes.

So we have growth which is >0%
Stagflation =0% growth
Recession = 2 qtrs of negative growth in succession.

What is a depression?

What is the difference between a country depression & a global depression?
How do you get the globe out of a depression?


limpsfield

6,676 posts

283 months

Tuesday 7th October 2008
quotequote all
Welshbeef said:
What is a depression?

What is the difference between a country depression & a global depression?
How do you get the globe out of a depression?
Seems more of a subjective thing than a recession:

In economics, a depression is a term commonly used for a sustained downturn in the economy. 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 unusual increases in unemployment, restriction of credit, shrinking output and investment, price deflation or hyperinflation, numerous bankruptcies, reduced amounts of trade and commerce, as well as violent currency devaluations.

There is no official definition for a depression, even though some have been proposed

http://en.wikipedia.org/wiki/Economic_depression

Einion Yrth

19,575 posts

274 months

Tuesday 7th October 2008
quotequote all
Welshbeef said:
How do you get the globe out of a depression?
Prozac in the water supply.

MrVelox

2,974 posts

217 months

Tuesday 7th October 2008
quotequote all
I think that we are a huge way off from the events of 1929. The stock markets are weak, but have not failed.

25% of the country is not out of work, more like 5%.

10% of the country is not homeless.

Weather conditions have not destroyed Midwest farms, and we are no longer an agrarian society.