Seek And Ye Shall Not Find: The Absence Of Hysteresis In U.S. Macroeconomic Data
from the Richmond Fed
– this post authored by Luca Benati and Thomas A. Lubik
Economists are keenly interested in longer-run economic phenomena that interact with short-run shocks and business cycles. A particularly well-known example is hysteresis, which posits that disturbances typically thought of as transitory actually can have permanent effects. While this concept is well-recognized in theoretical modeling, empirical evidence has been sparse.
Source: http://econintersect.com/pages/contributors/contributor.php?post=202102150520
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