There’s an old joke among economists that states:
A recession is when your neighbor loses his job.
A depression is when you lose your job.
The difference between the two terms is not very well understood for one simple reason: There isn’t a universally agreed upon definition. If you ask 100 different economists to define the terms recession and depression, you’d get at least 100 different answers. I’ll try to summarize both terms and explain the differences between them in a way that almost all economists could agree with.
Learn more here: Recession? Depression? What's the difference?
A recession is when your neighbor loses his job.
A depression is when you lose your job.
The difference between the two terms is not very well understood for one simple reason: There isn’t a universally agreed upon definition. If you ask 100 different economists to define the terms recession and depression, you’d get at least 100 different answers. I’ll try to summarize both terms and explain the differences between them in a way that almost all economists could agree with.
Learn more here: Recession? Depression? What's the difference?
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