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.
縮小均衡の状態では、需要と供給が低い水準で釣り合っている。
In a state of diminishing equilibrium, supply and demand are balanced at a low level.
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.