*noun*; prolonged economic crisis characterized by drastic (i.e., >20%) decline in output, reduction in employment, and deflation. Other technical conditions include a liquidity trap and "permanent" (i.e., persisting in many sectors for several quarters) failure to reach equilibrium.

Usually the word "depression" (when referring to economics) is used to refer to the Great Depression, although in fact there were eight incidents of a global depression between 1815 and 1922. These were
--- 1815-21
--- 1832-33
--- 1837-44
--- 1854-57
--- 1867-68
--- 1876-79
--- 1893-96
--- 1920-22
In addition, there have been many localized depressions, panics (e.g., the 1907 Panic {USA}, followed by the Mexican Depression of 1908), and recessions.


The technical distinction between a recession and depression can vary, although economists usually agree on which is which. In Keynesian economics, a depression is defined by the existence of a flat liquidity-money (LM) curve (which means that interest rates have no influence on people's determination to hold their wealth as cash); and/or a nearly vertical investment-savings (IS) curve (which means interest rates have no influence on the willingness of entrepreneurs to expand/continue operations).

In contrast, a recession is a much less drastic event. Interest rates still have influence on investment and liquidity, and there is no deflation. Conventional fiscal policy and monetary policy, combined and in moderate doses, can restore full employment.

Neoclassical economics/New Classical economics defines a recession as a shift in people's income/leisure preferences as the result of a technology shock. The technology shock sharply reduces the returns to labor, so workers are paid less and many withdraw their labor from the market. In a depression, the technology shocks are compounded and cause a permanent change in the production function; large numbers of enterprise are no longer viable.

More generally, a recession involves the downward phase of a routine business cycle; these typically occur every three-seven years. A depression represents a partial collapse of the industrial system, and a comprehensive collapse of the financial system.
From 1929 to 1933 the U.S. price level fell 25 percent. Many economists blame this deflation for the severity of the Great Depression. They argue that the deflation may have turned what in 1931 was a typical economic downturn into an unprecedented *sic* period of high unemployment and depressed income.

N. Gregory Mankiw, William M. Scarth, *Macroeconomics: Canadian Edition*, 2nd ed. (2003) p.318
by Abu Yahya March 07, 2009
Top Definition
A scary enough place to visit and I hate having to live there.
by trustme October 02, 2003
Symptons of depression:

1~sadness, tearfulness, crying, frequently showing pervasive sadness by wearing black clothes, writing poetry with morbid themes, or having a preoccupation with music that has nihilistic themes. Also, crying for no apparent reason.

2~hopelessness feeling that life is not worth living or worth the effort to even maintain their appearance or hygiene. They may believe that a negative situation will never change and be pessimistic about their future.

3~less interest in activities; or not enjoying previously favorite activities dropping out of clubs, sports, and other activities. Not much seems fun anymore.

4~persistent boredom; low energy Lack of motivation and lowered energy level is reflected by missed classes or not going to school. A drop in grade averages can be equated with loss of concentration and slowed thinking.

5~social isolation, poor communication lacking connection with friends and family. avoiding family gatherings and events. Teens who used to spend a lot of time with friends may now spend most of their time alone and without interests. not sharing feelings with others, believing that you are alone in the world and no one is listening to you or even cares about you.

6~low self esteem and guilt assuming blame for negative events or circumstances. you may feel like a failure and have negative views about their competence and self-worth. you feel as if you are not "good enough."

7~extreme sensitivity to rejection or failure believing that you are unworthy, becoming even more depressed with every supposed rejection or lack of success.

8~increased irritability, anger, or hostility often irritable, taking out most of the anger on your family. you may attack others by being critical, sarcastic, or abusive. you may feel u must reject ur family before their family rejects them.

9~difficulty with relationships you may suddenly have no interest in maintaining friendships. you'll stop calling and visiting their friends. u also may have lost a loved one or had a bad relationship with ur bf/gf

10~frequent complaints of physical illnesses, such as headaches and stomachaches complaining about lightheadedness or dizziness, being nauseous, and back pain. Other common complaints include headaches, stomachaches, vomiting, and menstrual problems.

11~frequent absences from school or bad performance in school causing trouble at home or at school. Because u may not always seem sad, parents and teachers may not realize that the behavior problem is a sign of depression.

12~poor concentration having trouble concentrating on schoolwork, following a conversation, or even watching television.

13~a major change in eating and/or sleeping patterns Sleep disturbance may show up as all-night television watching, having a hard time getting up for school, or sleeping during the day. Loss of appetite may become anorexia or bulimia. Eating too much may result in weight gain and obesity.

14~talk of or efforts to run away from home Running away is usually a cry for help. This may be the first time the parents realize that their child has a problem and needs help.

15~thoughts or expressions of suicide or self-destructive behavior saying u want to be dead or talk about suicide.

16~alcohol and Drug Abuse using alcohal or other drugs as a way to feel better.

17~self-injury having difficulty talking about their feelings may show their emotional tension, physical discomfort, pain and low self-esteem with self-injurious behaviors, such as cutting.
The definition is enough.
by Kitty H. May 19, 2005
A feeling which makes you think there is no hope, no way to survive, and no point in carrying on this charade you calla a life. A feeling which is so emotionaly pressing, you feel as if you're going to explode with tears.
If you cry every night, but have no reason to cry, you may be suffering from clinical depression.
by Brianna March 09, 2004
The worst possible emotion you can feel. Makes you feel like theres no reason to do anything, and if its really bad, no reason to live. Can be very hard to overcome or sometimes just passes randomly.
Depression is a fucking bitch and i curse my humanity for being able to feel it.
by Blind_assassin September 14, 2005
anger without enthusiasm
being stuck in the middle of a huge room filled with well-lit doors, yet lacking the motivation to run and open one.
by beholdbojangles February 19, 2004
Im probablyl not adding anything realy new but this is my description of depression.

Imagine sitting inside of a box, Its a totaly transparent box, You can see a whole world outside of you with all the pleasures it can offer (you know like having fun with friends, playing games, listening to your favorite music, etc) Heres the catch, that box your inside of... Its bolted to the ground. Your trapped inside with no way of ever getting out.

To me, That is what depression feels like
I feel like a rat in a trap, Always wanting to break free of my restraints and run, But the metal only digs deeper the more I struggle.
by Skullbait June 07, 2007
A state of altered perception where one sees the world as bleak and dark. Feelings and actions such as purposelessness, disinterest, low self esteem, self-harm, pessimism, suicidal thoughts or tendencies and a lack of motivation or energy may accompany it. It is not simply the feeling of being sad, but is a lasting state of mind that could be caused by a number of factors. Many health problems lead to depression, poor sleeping habits or eating habits, stress, drugs. Somebody who lives a life of abuse or poverty would be a victim of depression. Clinical depression is a very serious problem, and those who have it should seek help. Often it is difficult to recognise due to the numbness it can bring, and usually people are not willing to admit when they are depressed. Depression is difficult to imagine when one is not depressed, and can therefore fall under the critical eye as something that does not exist and something people only whine about because they have nothing better to do. Nobody can know for certain what another person is feeling, so it is not something anybody can judge.
Your next door neighbour seems happy and normal. You find out he has killed himself. Nobody had suspected his depression, but he has been feeling alienated and could find no sense of living, the pain and torment he was secretly feeling were too much to take.
by Cmcc January 12, 2006
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