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The Difference between a Recession and a Depression *
Author(s) -
Eslake Saul
Publication year - 2009
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2009.00013.x
Subject(s) - recession , depression (economics) , great depression , causation , economics , keynesian economics , financial crisis , duration (music) , monetary economics , development economics , geography , political science , art , literature , archaeology , law
The global financial crisis and the ensuing sharp downturns in economic activity around the world have rekindled interest in the question of the circumstances under which a “recession” can be appropriately labelled a “depression.” The differences are more profound than simply depth and duration, but reflect differences in causation and accompanying consequences. Moreover macroeconomic policies, which have been effective in responding to “recessions,” may be less effective in “depressions.”