Economic Depression

An economic depression is a period of sustained, long-term downturn in economic activity in one or more economies. It is a more severe economic downturn than a recession, which is a slowdown in economic activity over the course of a normal business cycle. Economic depressions are characterized by their length, by abnormally large increases in unemployment, falls in the availability of credit shrinking output as buyers dry up and suppliers cut back on production and investment, more bankruptcies including sovereign debt defaults, significantly reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations.