Depression

A depression is a term applied to a sustained downturn in economic activity. Unlike a recession (defined as two quarters in a row of contraction), a depression does not have a specific measurement that determines its existence. In general, to be termed a depression, a contraction must be longer and/or more severe than a recession. Depressions normally feature high levels of unemployment, restriction of credit, and numerous bankruptcies. The most notable historic depression is the Great Depression of the 1930s, which affected many countries around the world. Because of the increased social safety net, many economists believe that a repetition of an event like the Great Depression is unlikely