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A period of slow economic growth, or, in securities trading, a period of inactive trading.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
In conclusion, because of the poor agreement during winter in China between the occurrence of pollution episodes and NOAA's air stagnation threshold, the NOAA air stagnation definition appears not to be applicable for China.
Hansen's Great Depression-era theory of secular stagnation was based on an observation about the U.S.
The Chinese medicine believes that the main cause of rumination for qi stagnation constitution is principally due to blockage of the liver qi, which leads to the spleen losing its transportation and transformation functions [18].
Kevin Clinton, head of road safety at ROSPA, said: "We are pleased to see that fatalities and injuries have dropped since 2014, but the longer-term trend seems to be showing stagnation, so they are not falling as steadily as they were before 2011.
"The secular stagnation framework pays insufficient attention to important cyclical adjustment processes that have affected US economic performance over the last five or six years but are very unlikely to have the same impact over the next five years," said Brian Coulton, Chief Global Economist, Fitch Ratings.
We notice that stagnation of the Ritz values that are used to restart iteration causes the poor convergence of exact shift-restarted Lanczos when m is too small.
Makinde, "Heat and mass transfer by MHD mixed convection stagnation point flow toward a vertical plate embedded in a highly porous medium with radiation and internal heat generation," Meccanica, vol.
Meanwhile, much of the Willamette Valley and the rest of Oregon is under an air stagnation advisory through Monday, the National Weather Service said.
16 decision to raise its targeted federal funds rate by 25 basis points, Summers now argues that the Fed actions make "secular stagnation more likely."
M2 EQUITYBITES-September 2, 2015-UK manufacturing moves towards stagnation as pound stumbles
BANKING AND CREDIT NEWS-September 2, 2015-UK manufacturing moves towards stagnation as pound stumbles