Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.
Related to Stagnation: blood stagnation


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 ?
Another common stagnation point can be at the interface of the hot-runner nozzle with the manifold.
The good news is that even that has grown since 1973, the year he chooses for the break point when stagnation began setting in.
This includes the non-reformed judiciary, partisized administration, the stagnation in the political dialogue and the worsening of the interethnic relations, pressures on the media .
Ates said that stagnation would probably continue till the end of 2011 and they expected a pickup in the sector towards 2012.
Al-Jaderji praised Talabni's efforts to end the current political stagnation and to form the new government.
Indeed, Tokyo University economist Fumio Hayashi has demonstrated that the main reason behind Japan's twenty years of stagnation has been the decrease in the quantity of work performed by the Japanese.
Allied Carpets, which had a total of about 1,500 workers and 217 stores across the country, has suffered in recent months as the housing market stagnation stalled spending on its products.
The heat transfer rate to or from a jet impinging onto a surface is a complex function of Reynolds number (Re), Prandtl number(Pr), nozzle-to-resistor spacing (H/d), and non-dimensional displacement from the stagnation point (r/d).
The uncertainty of the nozzle bank (NB) stagnation pressure also includes the four components given in Table 12 plus an additional component (26 X [10.
gross domestic product--and inaugurated a period of stagnation and rising unemployment.
It took an evolutionary leap in the human species to help trigger the change from centuries of economic stagnation to a state of sustained economic growth, according to the first theory that integrates evolutionary biology and economics.
Some critics have attributed the stagnation of test scores to social phenomena outside the schools' control, especially the influx of immigrants from third world countries in the past three decades.