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Economics

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  • December 20, 2022
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Death Spiral

A situation that describes a market heading for a collapse or state of complete malfunctioning due to deterioration in economic fundamentals and bad macroeconomic management and decision making in relation to determination and fine-tuning of key variables and factors such as interest rate, inflation rate, savings accumulation and investment decisions, etc. In general, death spiral refers to any adverse movement in a market which seems to be bottomless- a plunge to yet ever-worsening levels of economic activity and overall functioning that rip apart a major part of an economy, bringing it to a complete standstill.


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