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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 ?
He argues that the 'Klan era' of 1920-1929 is a case of economic stagnation.
When the war ended stagnation seemed to have vanished.
A broad cultural cluster of Arab writers and artists in the 19th century advocated renewal (Tajdeed) of literary and critical discourse by way of challenging and overcoming centuries of social and intellectual stagnation (Joumoud) under the colonial rule of the Ottoman Empire.
54 cm), the stagnation pressure of the MP CFV will equal approximately four times that of the LP CFVs.
The cross-sectional area for main flow in the c-d plates decreases with an increase of <u>/R for the viscoelastic fluid (both Fluid A and C) owing to the generation of the stagnation flow in the c-d region as shown in Fig.
Key Words: Numerical solution, MHD stagnation point flow, Shrinking sheet, Prandtl number, Magnetic parameter
BEIRUT: A total of 271 new apartments in Beirut valued at $480 million remained unsold in 2014, a recent study showed, in a sign of stagnation in the real estate sector.
But Shepherd, who argues that conditions of secular stagnation are if anything more deeply entrenched in Europe and Japan than in the U.
Global Banking News-January 17, 2014--Official says Russia is dealing with stagnation and inflation
Merry air stagnation and a happy rural backyard burning ban.
Pour les trois prochains mois, 48 pc des industriels sont optimistes quant a l'evolution de l'activite et 40 pc prevoient une stagnation, explique l'enquete.
THE UK faces a lost decade of stagnation unless the Government works with business and finance to move the country away from an economic corner, a new report has warned.