Palley, Thomas - In: Economics: The Open-Access, Open-Assessment E-Journal 11 (2017) 2017-18, pp. 1-18
This paper uses hysteresis to develop the concept of policy lock-in and lock-out. Policy changes may near …-irrevocably change the economy's structure, thereby changing the distribution of wealth, income and power. That may lock-in policy by … changing the political equilibrium. Exit costs that block policy reversals also cause lock-in. Conventional thinking treats …