Business cycle

In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic). There is no official definition of a recession, according to the International Monetary Fund.

fluctuation in the degree of utilization of the production potential of an economy

economic phenomenon of very high prices driven by speculation

banking crisis when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future

prolonged period of slow economic growth

complex chain of events that reinforces itself through a feedback loop

French economist (1819–1905)

In economics, overproduction, oversupply, excess of supply, or glut refers to excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment.

an unexpected event that suddenly increases or decreases the supply of a commodity or service

a state to which an economy, society, etc. settles following a crisis, when this differs from the situation that prevailed prior to the start of the crisis

regulation designed to mitigate systemic financial risk

absence of excessive fluctuations in the macroeconomy

increase in economic activity

idea that the construction of skyscrapers predicts an economic crash

phase of the business cycle following a recession

phenomenon in economies of developed nations since the mid-1980s

the expansion and contraction of access to credit over time period, regarded by some as the fundamental process driving the business cycle

At the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic entity, such as a household or a firm. It is the opposite of leveraging, which is the practice of borrowing money to acquire assets and multiply gains and losses.

American economist

in economics, a shift in the way a market operates