A recession is a sustained decrease in economic activity that is typically accompanied by decreases in employment, national income, and the production of goods and services. An unofficial way to estimate the existence a recession is to look for at least two consecutive quarters of declines in gross domestic product (GDP). The official calculations are more complex and are conducted by the National Bureau of Economic Research (NBER).
A depression is a severe and prolonged recession.
See also "Recessions & Depressions: Questions & Answers."
Joseph Schumpeter's Business Cycles
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Business Cycles
The link above takes you to a pdf file of Joseph Schumpeter's book.
14 years ago
A depression usually lasts much longer and is much deeper and also usually has deflation
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