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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. Price deflation, financial crises, stock market crash, and bank failures are also common elements of a depression that do not normally occur during a recession.