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Reference.org
Balance sheet recession
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<p>A balance sheet recession is a type of <a href="/facts/Economic_recession/ncYpUqmr">economic recession</a> that occurs when high levels of private sector debt cause individuals or companies to collectively focus on saving by paying down debt rather than spending or investing, causing <a href="/facts/GDP/zQRgyFKc">economic growth</a> to slow or decline. The term is attributed to economist <a href="/facts/Richard_Koo/RRBy0kYY">Richard Koo</a> and is related to the <a href="/facts/Debt_deflation/7SzryPSd">debt deflation</a> concept described by economist <a href="/facts/Irving_Fisher/tvyA4fJ0">Irving Fisher</a>. Recent examples include <a href="/facts/Lost_Decade_(Japan)/U0Larczq">Japan's recession</a> that began in 1990 and the <a href="/facts/Subprime_mortgage_crisis/E42h1pSY">U.S. recession</a> of 2007-2009. </p>