Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/274234 
Year of Publication: 
2023
Series/Report no.: 
FMM Working Paper No. 92
Publisher: 
Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM), Düsseldorf
Abstract: 
This paper argues for broadening the application of hysteresis to institutions, policy lockin, psychology, identity, and economic ideas. Hysteresis is an element of historical processes, and the real world is historical. That explains why hysteresis is pervasive and important. Hysteresis should be a fundamental building block of political economy. Expanding its application in economics is both an opportunity and a challenge. The opportunity is that it provides a means for incorporating political, sociological, and psychological forces which economics tends to neglect. That will enrich economics and can also provide a mutually enriching bridge to other social sciences. The challenge is introducing such concerns raises questions about the character of economics' knowledge claims, which is likely to trigger resistance from economists.
Subjects: 
Hysteresis
institutions
policy lock-in
psychology
identity
ideas
JEL: 
B40
E10
E12
E32
P50
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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