Recession vs depression - Sketchplanations

Recession vs depression

There don’t seem to perfect definitions for either recessions or depressions. A recession is commonly defined as two successive declining quarters of GDP, but it’s not gospel. And a depression is a kind of prolonged recession for 3–4 years. So I liked Harry Truman’s clarifying explanation — US president from 1945–1953:

A recession is when your neighbour loses his job. A depression is when you lose yours. —Harry Truman 

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