recognition lag

Definition

The delay in time between the occurrence of a macroeconomic event or shock and how long it takes for it to be noticed. For example, in 2008 when Lehman Brothers filed for bankruptcy, the recognition lag - the time it took for investors and markets to recognize this event - was less than one day.

Use recognition lag in a sentence

There was a recognition lag and it took a lot of time before people noticed exactly what was going on.

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You should always do your best to try and figure out multiple paths to take during the recognition lag so you are prepared.

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With technology keeping us informed during our waking hours the recognition lag for newsworthy events has decreased to an astonishing level.

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recognition clause recognize