Economic Instability

Definition

Economic instability refers to a state of unpredictability and insecurity in the economy, characterized by fluctuations in prices, unemployment, and overall economic decline. This term describes a lack of stability and balance in the financial system.

Related terms

Inflation: Inflation is when there is a general increase in prices over time, reducing the purchasing power of money.

Depression: A depression refers to an extended period of severe economic contraction, marked by high unemployment rates and reduced production.

Trade deficits: Trade deficits occur when a country imports more goods than it exports, leading to an imbalance in international trade and potential economic instability.