Depressions and Panics

photograph of

This image, from Business Booms and Depressions Since 1775, shows one boom-and-bust cycle.

A depression is a period of sustained downturn in economic growth and activity. A (banking) panic is a type of financial crisis affecting banks across a region or country in which bank customers lose confidence and withdraw their deposits, leading to bank failures. Panics and depressions are often linked.

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102