What are the sign of depression in the economy?

1. Debt service obligations became unsustainably large in relation to the cash flows to service them.
2. Investors seeks to convert large amounts of financial assets into cash
3. Monetary policy is ineffective in creating credit, credit creation turns into credit contraction until this fundamental imbalance between need for cash and amount available rectified.
   Until the fundamental problem rectified a cash shortage produces liquidity and debt problems and this will leads to sell off of financial assets for cash and which further worsens the problem of cash shortages and puts Central bank in the position of having to choose between- a) keeping the amount of money the same and allowing the shortage of cash to become more acute this driving up interest rate and causing the credit crisis to worsen.
   b) printing more money thus depreciating it's value

Weimar Republic case study , 1980's Latin America case study
These are interesting cases to understand dynamics behind the process of alleviating the fundamental imbalances primarily through the creation of cash.

Source- Ray Dalio