weakness, leading in turn to a deterioration of potential output via a hysteresis-like effect. For the most severely affected …

response of investment to continued demand weakness, leading in turn to a deterioration in potential output via a hysteresis …

-term effects on expected employment and labor force participation, suggesting positive hysteresis. Our forecast evaluation tests …

aggregate demand policies. In this paper we study the case of a central bank that ignores the presence of hysteresis when … interaction between forecasts, policies and hysteresis creates the dynamics of self-perpetuating errors that is the focus of this …

existence of substantial hysteresis effects of demand shocks. …

potential output is subject to hysteresis. We augment a basic NewKeynesian model by hysteresis in potential output and contrast … simulation outcomes of this extended model to the standard model. We find that considering hysteresis allows for a more realistic …

enables hysteresis to be taken into account. Hysteresis is likely to show up in unemployment but it can also affect the … capital stock due to the existence of long investment cycles. In the proposed model, hysteresis may affect all the factor … be computed that are hysteresis-free and less prone to volatility. A complementary measure of the output gap that takes …