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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 ?
This discolored material is likely the result of a reaction between the tool steel and the polymer as it stagnates in the flutes.
The agency said that profits for the major banks will stagnate in 2013 and the weakening economy will lead to a rise in bad debt charges.
The central bank of Germany has warned that the economy could stagnate in 2010.
In high-pressure weather systems, air close to the ground tends to stagnate, officials said.
He's been very active in dealing with problems, taking the lead in making sure that the hospital has moved forward rather than stagnate,'' director Gary Hill said.
When he's on the bench and Watson must run the offense, the Bruins stagnate.
Despite a low 17% average teledensity in the whole Latin American and Caribbean region, fixed-line growth continued to stagnate over the last 12 months.
It's simple economics that without growth, you stagnate.
The demand for many high volume petrochemical-based solvents will decline or stagnate due to toxicity concerns.
Business will stagnate or depart, leaving a shrinking tax and employment base.
This kind of wireless infrastructure appropriate for the developing world is more than just smart strategy; it may help mitigate the effects of the overall wireless infrastructure market trend which, according to the updated forecasts contained in the study, continues to stagnate from an overall standpoint.