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.
References in periodicals archive ?
Without turbulence, living systems stagnate, losing their ability to adapt and ultimately to survive.
pounds 500 Xword THE winner of last week's pounds 500 Xword is Mrs Susan McGaw, Newton Stewart, Wigtownshire YESTERDAY'S SOLUTIONS WEE THINKER: Across: 7 Platinum; 8 Duck; 9 Budget; 10 Lumber; 11 Etna; 12 Damaging; 15 Sidestep; 19 Urge; 21 Ascent; 23 Rotund; 24 Eros; 25 Extended; Down: 1 Flaunt; 2 Stagnate; 3 United; 4 Emblem; 5 Edam; 6 Screen; 13 Axe; 14 Gluttony; 16 Insure; 17 Totter; 18 Pirate; 20 Ginger; 22 East; OPUS GASH HEW PARA R I CA AYE T I DY EMULATED SLU I CE LOG NATAL OBAN SWAGGER GONE U I G EDGES ATE ELAL UTTERED TYRE USHER AWN I NROAD TERR I F I C ABTA AVE P I SA NEON BED ETAL TYPE
ECONOMIC growth in the north west will stagnate for at least two years, says 56% of the region's finance directors in a survey by accountants Baker Tilly.
THE coming year will see real take home pay "stagnate" and property prices fall, the Governor of the Bank of England has predicted.
But women's wages start to stagnate as early as their 30s and many are paying an unacceptable penalty simply for having children.
As governments clutch precious petroleum, economies stagnate, direct foreign investment drops, and state-run oil companies burn through capital.
And it stems from the frustration and humiliation of people who see their countries stagnate in corruption and injustice while Europe and America prosper.
The centre's Cathy Forster said the website began to stagnate as it lost the volunteers responsible for running, but plans for updating were in the pipeline.
It had several discontinuous areas in the flow path where material could stagnate, and it did not seal efficiently when processing high-temperature polymers.
The latter, in turn, are being held back as retail sales stagnate and firms continue to trim staff in efforts to improve efficiency.
THE majority of families are bracing themselves for their finances to deteriorate next year or at best stagnate.
According to Moody's Investor Services, profits at banks in Australia will stagnate in 2013.