Effect of Current Residency Regions across Socio-Economic and Demographic Factors on Current Subjective Financial Situation in Egyptian Population

Chytil, Z,; Maslo, L

(Ir)reversibility of Hysteretic Systems in Post-Keynesian Economics

Chytil Z., Maslo L.

Abstract:

This paper deals with a typology of hysteretic systems. We argue that the insufficient emphasis in Setterfield (1995, 1996, 2008) of the difference between the direct shock and the indirect shock produces terminology obfuscating the problem of (ir)reversibility. Drawing on Amable’s (1993) distinguishing between two categories of shocks, we redefine Setterfield’s super-reversibility and irreversibility and extend Setterfield’s typology by adding the cases of quasi-irreversibility, inter-branch reversibility and direct reversibility. The concept of hysteresis in the rate of unemployment and potential output might be a solution to the Euro-sclerosis phenomenon.

Keywords: hysteresis, unit-root model, remanence, irreversibility, super-reversibility, direct shock, indirect shock

PDF

Chytil, Z., Maslo, L. (2014). (Ir)reversibility of Hysteretic Systems in Post-Keynesian Economics. International Journal of Social Sciences, III(4), pp. 153-172.

LINK

http://www.iises.net/-ir-reversibility-of-hysteretic-systems-in-post-keynesian-ec.html

APA citation

Chytil, Z., Maslo, L. (2014). (Ir)reversibility of Hysteretic Systems in Post-Keynesian Economics. International Journal of Social Sciences, III(4), pp. 153-172.