Recession

Filed Under » , , ,
Dictionary Says

Definition of 'Recession'

A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP); although the National Bureau of Economic Research (NBER) does not necessarily need to see this occur to call a recession.

Investopedia Says

Investopedia explains 'Recession'

Recession is a normal (albeit unpleasant) part of the business cycle; however, one-time crisis events can often trigger the onset of a recession. The global recession of 2008-2009 brought a great amount of attention to the risky investment strategies used by many large financial institutions, along with the truly global nature of the financial sytem. As a result of such a wide-spread global recession, the economies of virtually all the world's developed and developing nations suffered extreme set-backs and numerous government policies were implemented to help prevent a similar future financial crisis.

A recession generally lasts from six to 18 months, and interest rates usually fall in during these months to stimulate the economy by offering cheap rates at which to borrow money.

Related Video for 'Recession'

Articles Of Interest

  1.

    How The Federal Reserve Manages Money Supply

    Find out how the Fed manages bank reserves and this contributes to a stable economy.

  2. What Is A Double Dip Recession?

    Learn the economic details behind the ups and downs of a double dip recession.

  3. Tips For Recession-Proofing Your Portfolio

    Find out what to do when the sun sets on a burgeoning market.

  4. 8 Fund Types To Use In A Recession

    When the economy blows up, these funds offer some protection from major losses.

  5. Recession: What Does It Mean To Investors?

    Understanding the business cycle and your own investment style can help you cope with an economic decline.

  6. Cashing In On A Commodities Boom

    They're hard to predict, but commodities cycles provide valuable information for traders.

  7. 4 Ways To Weather An Economic Storm

    Keeping a cool head and sticking to a plan during an economic slump is vital to financial stability.

  8. 4 Tips For Buying Stocks In A Recession

    Bear markets can terrify even seasoned investors. Learn how to invest safely.

  9. Industries That Thrive On Recession

    Find out where to turn when looking to invest in a tumultuous market.

  10. Microeconomics

    This tutorial teaches the basics of one of the most important economic topics. A must for all investors.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=23f5cd813455eca03f629b1799fe2f77