This paper argues that hysteresis helps explain the long-run behavior of unemployment. The natural rate of unemployment … hysteresis effects and present new evidence for 20 developed countries. A central finding is that large increases in the natural … hysteresis theories and inconsistent with theories in which the natural rate is independent of aggregate demand …

Using the sticky price monetary model of exchange rate determination and the sunk cost model of trade hysteresis, we … show that a sufficiently large policy misalignment can induce hysteresis in the trade balance and thereby alter the steady …, policy, and econometric implications. Since hysteresis in our model can entail industrial dislocation and the scrappage of …

-home wages did not respond). Second, we document novel labor-demand-driven "hysteresis" from this policy – i.e. persistent … reform level in the formerly subsidized ages. These hysteresis effects triple the direct employment effects of the reform …

longer in place. This paper studies the importance of such "hysteresis" – the failure of an effect to reverse itself as its … underlying cause is reversed – for the welfare evaluation of corrective policies. First, we introduce hysteresis into the … then derive new formulas allowing for hysteresis. We show that, under certain conditions, the persistent effect of a short …

-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a …

we interpret as reflecting hysteresis with a financial twist, in which the financial system causes aggregate supply and …