Stagnation

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Stagnation

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

Stagnation

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.

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.

stagnation

see SECULAR STAGNATION.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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The workshop was aimed to make the public aware of the dangers of mosquitoes and how to prevent its increase by getting rid of open stagnant water, in which mosquitoes breed.

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By Salman Siddiqui/Staff Reporter Last weekend's downpour in Qatar has left many areas in Al Wakrah with stagnant water especially outside residential areas that can pose health risks if proper preventive measures are not taken soon, several residents have said.