Tuesday, January 22, 2013

THE FIRST WORD


hysteresis
The latter possibility...suggests that a severe cyclical downturn can morph into a long-term structural problem, as once-productive workers fall permanently out of the workforce—an idea economists refer to as "hysteresis."
Hysteresis comes from a Greek word meaning "a deficiency," from a root meaning "late." In economics, the term usually refers to systems where an effect lags behind its cause.

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