Luca Fornaro on Hysteresis, Endogenous Growth, and Aggregate Demand Policies
Macro Musings with David Beckworth
00:00
Macroeconomic Policies and Hysteresis
This chapter emphasizes the importance of medium-term macroeconomic policies and understanding behavior during recessions, particularly through the lens of hysteresis. It explores the intricate relationships between monetary policy, productivity growth, and capital flows, citing historical examples and the implications of recent economic crises. The discussion highlights the need for targeted policy measures to ensure productive investment, particularly in the face of challenges posed by supply shocks and trade deficits.
Transcript
Play full episode
