What term accurately describes a sudden and severe economic downturn in the 19th century?

The term that accurately describes a sudden and severe economic downturn in the 19th century is "Panic." This term specifically refers to financial crises that lead to a rapid decline in economic activity, often characterized by bank failures, stock market crashes, and widespread unemployment. One of the most notable examples is the Panic of 1837, which had devastating effects on the American economy and led to a prolonged period of hardship.

In this context, "Panic" effectively conveys the immediacy and intensity of the economic distress experienced during that period, distinguishing it from other more prolonged or gradual economic challenges like a recession or a depression, which tend to describe less abrupt conditions.