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Recession and Depression - Definition, Causes and How to Prepare

By Kimberly Amadeo, About.com

This introduction to recession and depression will answer whether we are in a recession or depression now. It also defines recession and depression, and explains the causes of recession and depression. You will learn the difference between recession vs depression, and a little history about the Great Depression of 1929. Finally, learn how to prepare for a recession.

What Is a Depression?

What Is a Recession?

The official definition of recession is when GDP growth is negative for consecutive two quarters or more. However, you can feel like you are in a recession before it has officially started because it is usually preceded by several quarters of slowing but positive growth. Find out more about the recession in 2001, and the benefits of recession.

The Great Depression of 1929 - Could It Happen Again?

A Depression on the scale of that in 1929 could not happen exactly the way it did before. Central banks around the world, including the U.S. Federal Reserve, are so much more aware of the importance of monetary policy in regulating the economy. Find out what caused the Depression, how bad it was, and what finally ended it.

During a Recession/Depression, Is My Money Safer Under the Mattress?

Fortunately, the FDIC insures 100% of your savings, checking and money market deposits up to $100,000 per FDIC-approved bank. So, as long as you are within their guidelines, your money is safe in a bank. Furthermore, if it is in a bank, you may be able to earn interest, and lose less to inflation. Finally, if it is under a mattress, someone could steal it.

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