Cerra, Valerie; Fatás, Antonio; Saxena, Sweta Chaman - 2020
Traditionally, economic growth and business cycles have been treated independently. However, the dependence of GDP … levels on its history of shocks, what economists refer to as 'hysteresis,' argues for unifying the analysis of growth and … renewed interest in hysteresis has been sparked by the persistence of the Global Financial Crisis and fears of a slow recovery …