Category:Depressions/Recessions

An Economic Depression is an extreme downturn in the economy. The term Depression, has been in and out of vogue throughout history, in part because economies react to not only quantifiable market forces, but also the perceptions and prejudices of those involved in economies. Use of the term Depression is percieved to create a lack of confidence in markets which is characteristic of the Depression itself. Many Economists have had the tendency to resist the use of the term Depression for this reason, and an argument can be made that Depressions have been defined out of existence. Some conservative economists have the tendency to take the stance of "markets are self correcting" so "ignore it and it will go away".