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A period of slow economic growth, or, in securities trading, a period of inactive trading.


A period where an economy grows at an extremely low rate without actually entering a recession. During stagnation, it is unlikely that jobs will be created, wages will increase, or that the stock market will boom. While there is no exact definition of economic stagnation, most analysts agree that positive growth under 2%-3% qualifies. It may occur because a business cycle is winding down, because a catastrophic event has caused economic uncertainty, or for any number of other reasons. Classical Keynesian economics states that stagnation will result in a period of low inflation because there is no growth in demand for money, but American stagnation in the 1970s also saw a period of high inflation. See also: Brezhnev Stagnation, Stagflation.


Stagnation is a period during which the economy grows slowly, doesn't grow at all, or actually contracts after adjusting for inflation. Typically, there is a corresponding contraction in the stock market.

As a result of a slowing economy, unemployment increases and consumer spending slows. Policymakers may fear a recession, and, in response, the central bank may try to stimulate growth by increasing liquidity and lowering interest rates.

While stagnation is hard on the economy, it's more common and potentially less disruptive than stagflation, which combines slowing growth with rising inflation.


References in periodicals archive ?
The foggy, stagnant conditions are expected to hold into the middle of next week.
amp;nbsp; The stagnant A's offense currently ranks 25th or 26th in the league in every major statistical category.
Vicky Redwood, senior UK economist at Capital Economics, said: "The figures suggest that underlying activity in the economy remains pretty much stagnant.
This is designed to release the stagnant fluids trapped in tissues Now gently slide the massager across the under eye area.
Mohammed Abdul Rahman, a resident of Khozam, said, "I have fears that mosquitoes and other insects might breed in the stagnant water near my house.
He said water wells and water tanks should be sealed off properly and stagnant water and pools must be drained off.
HSBC Holdings (LSE: HSBA) is expecting its consumer retail business to remain stagnant in India for the current fiscal.
One of Japan's major confectioneries wants to install state-of-the-art production machinery there to enhance efficiency, thereby perking up its stagnant candy business, the sources said.
Nine biomedical-research institutions say that stagnant funding of the National Institutes of Health (NIH) is holding back scientific progress.
PALMDALE -- A 5-year-old girl was reported in stable condition Friday after being pulled out of a stagnant swimming pool in the backyard of a house where she was living, authorities said.
9 bil) in 2005, and it will remain stagnant in 2006 at 5,088.
Among lone mothers under 40, economic outcomes have been relatively stagnant.