balanced contraction; diminishing equilibrium; reductive balance
Economics term describing a situation where an economy or market shrinks while maintaining internal balance, often used in discussions of deflationary spirals or managed decline.
It was pointed out that the Japanese economy risks falling into a balanced contraction.
In a state of diminishing equilibrium, supply and demand are balanced at a low level.
均衡 means 'equilibrium' or 'balance' in general; 縮小均衡 specifically refers to a shrinking equilibrium.
縮小 means 'reduction' or 'contraction'; combined with 均衡 it forms the compound term.
拡大均衡 describes a balance reached through mutual expansion, while 縮小均衡 describes a balance reached through mutual contraction.
Compound of 縮小 (reduction) and 均衡 (equilibrium). The term likely emerged in economic discourse to describe a contracting yet stable state.