Stagnation

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Stagnation

A period of slow economic growth, or, in securities trading, a period of inactive trading.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

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

stagnation

see SECULAR STAGNATION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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London, April 1 ( ANI ): Mineralogists of the Universities Jena and Bayreuth have provided explanation to why plate tectonics stagnate in some places
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Over time, material that stagnates in the flow path or leaks at a parting line degrades and then shows up as black or brown streaks or specks in the molded part.