Hysteresis and the Economy

Описание: Mark Setterfield delves into the concept of hysteresis to explore whether temporary economic shocks like the COVID-19 recession have lasting effects on the economy.

Setterfield, Professor of Economics at the New School for Social Research, explores how such temporary events can have enduring effects on economic outcomes, distinguishing between temporary and extreme effects and their potential to cause permanent changes. He discusses both the demand and supply sides of the economy, questioning the long-term impact of the pandemic on household behavior, labor market dynamics, and aggregate demand and supply conditions. Setterfield's insights provide a nuanced understanding of the economy's path-dependent nature and the role of policy interventions in mitigating adverse effects.

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Capitalism, Inclusive Growth, and Social Protection: Inherent Contradiction or Achievable Vision? http://www.e-elgar.com/shop/usd/capit... Cheltenham, UK: Edward Elgar (2023) (with Hagen Krämer and Christian Proaño).