Tag Archives: hysteresis

Summers: We haven’t done it in 15 years and Japan hasn’t done it in a generation

Starts around the 9 min mark. HT: Mark Thoma

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4 Ways Persistently High Unemployment Could Ossify – the Human Capital Channel

Brad Plumer has a post today on rough projections that we will not reach full employment until 2022. Here are four ways that failing to address the unemployment problem today could lead to long-lasting (and potentially permanent) reductions in human capital, employment, and social … Continue reading

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Understanding Hysteresis

I presented these slides on Blanchard and Summers 1986 yesterday at the Berkeley Macro lunch. If you are interested in Hysteresis, this is one of the seminal papers in the literature. Overview  Periods of persistently high unemployment are not uncommon events in … Continue reading

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Historical Hysteresis: Adverse Shocks vs Structural Problems

I started posting last week on the Summers & Blanchard paper, which is on hysteresis and the Unemployment problem in Europe starting in the mid 1970s. Many advocated structural explanations for hysteresis, but Summers & Blanchard looked to the Great Depression period … Continue reading

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