The offers that appear in this table are from partnerships from which Investopedia receives compensation. Stagnation results in flat job growth, no wage increases, and an absence of stock market Stagnation can occur on a macroeconomic scale or a smaller scale in specific industries or companies. Secular stagnation refers to "a condition of negligible or no economic growth in a market-based economy". A stagnant economy can also result from longer-term, structural conditions in a society. There were numerous strikes and other labor movements for a ten-hour day. Mature economies are characterized by slower population growth, stable economic institutions, and slower growth rates. Summers wrote numerous articles following the 2008 Global Financial Crisis2008-2009 Global Financial CrisisThe Global Financial Crisis of 2008-2009 refers to the massive financial crisis the world faced from 2008 to 2009. This resulted in constant spending for defense programs, creating what President Eisenhower called the U.S. birth rates began to recover by the time of World War II, and turned into the High-yielding crops and chemical fertilizers dramatically increased Although productivity never returned to peak levels, it did enjoy a revival with the growth of the computer and communications industries in the 1980s and 1990s.The U.S. economy experienced structural changes following the stagflation. The term "secular stagnation" was originally coined by Warnings similar to secular stagnation theory have been issued after all deep recessions, but they usually turned out to be wrong because they underestimated the potential of existing technologies. Find descriptive alternatives for stagnation. Conversely, stagnation can afflict underdeveloped or However, some economists, who favor Real Business Cycle Theory, would consider such periods essentially the same as cyclical stagnation. Investopedia uses cookies to provide you with a great user experience.
A recession is a significant decline in activity across the economy lasting longer than a few months. Stagflation is the combination of slow economic growth along with high unemployment and high inflation. Classical economists refer to this type of stagnation as a stationary state, and Keynesian economists consider it the secular stagnation of an advanced economy. Stagnation is a situation that occurs within an economy when total output is either declining, flat, or growing slowly. Stagnation A period of slow economic growth, or, in securities trading, a period of inactive trading. In the 1980s and 1990s Magdoff and Sweezy argued that a financial explosion of long duration was lifting the economy, but this would eventually compound the contradictions of the system, producing ever bigger speculative bubbles, and leading eventually to a resumption of overt stagnation. Stagnation sometimes occurs as a temporary condition in the course of an When stagnation occurs in a stable economy, it can be much more permanent than when it results from economic shocks or in the course of a normal business cycle. The term, a portmanteau of stagnation and inflation, is generally attributed to Iain Macleod, a British Conservative Party politician who became Chancellor of the Exchequer in 1970. For the concept in financial economics, see Historical periods of stagnation in the United StatesEnd of stagnation in the U.S. after the Great DepressionHistorical periods of stagnation in the United StatesEnd of stagnation in the U.S. after the Great Depression A low-trust culture can handicap economic performance by discouraging adherence to contracts and property-rights.
The tight labor market was a factor in productivity gains allowing workers to maintain or increase their nominal wages during the secular deflation that caused Construction of structures, residential, commercial and industrial, fell off dramatically during the depression, but housing was well on its way to recovering by the late 1930s.The depression years were the period of the highest The war created pent up demand for many items as factories that once produced automobiles and other machinery converted to production of tanks, guns, military vehicles and supplies. Stagnation can happen in an advanced economy with economic maturity. Financial institutions started to sink, many were absorbed by larger entities, and the US Government was forced to offer bailouts to support his view that the econom… Stagnation can happen in an advanced economy with economic maturity.

Keynesian Economics is an economic theory of total spending in the economy and its effects on output and inflation developed by John Maynard Keynes. Tires had been rationed due to shortages of natural rubber; however, the U.S. government built The memory of war created a need for preparedness in the United States. Consistent unemployment is also a characteristic of a stagnant economy. Purchase of structures and equipment increased 500% from the previous decade. Economic stagnation is a prolonged period of slow Economic Growth (traditionally measured in terms of the GDP growth), usually accompanied by high unemployment. A sudden increase in oil prices or fall in demand for a key export could also induce a period of stagnation for an economy. War and famine, for example, can be external factors that cause stagnation. Under some definitions, "slow" means significantly slower than potential growth as estimated by macroeconomists, even though the growth rate may be nominally higher than in other countries not experiencing economic stagnation. Stagnation is a prolonged period of little or no growth in an economy.

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. Synonyms for stagnation at Thesaurus.com with free online thesaurus, antonyms, and definitions.

Institutional factors, such as entrenched power among incumbent special interest groups who oppose competition and openness, can induce economic stagnation.