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. …

. Most countries have experienced strong hysteresis effects: shortfalls of actual output from pre-recession trends have …

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

unemployment function. Our results provide evidence of chronic underutilization of productive capacity and hysteresis in …

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 …

) to incorporate labor market hysteresis. This extension captures the idea that long and deep recessions (expansions) cause … financial crisis, compared to estimates without hysteresis. The smaller output gaps partly explain the absence of persistent …, hysteresis is expected to result in a structural improvement in growth and employment …