Hysteresis and the Business Cycle

Antonio Fatás is a professor of economics at INSEAD, an international business school with campuses in Singapore, France, and Abu Dhabi. Antonio joins David on Macro Musings to talk about hysteresis and the business cycle. Specifically, David and Antonio discuss the history of the academic literature on business cycle and trend, the impact of the Kydland and Prescott model, and how endogenous growth models play into hysteresis.

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Transcript for the episode can be found here.

Antonio’s INSEAD profile: https://faculty.insead.edu/fatas/

Antonio’s Twitter: @AntonioFatas

Related Links:

*Hysteresis and the Business Cycle* by Valerie Cerra, Antonio Fatás, and Sweta Saxena

https://faculty.insead.edu/fatas/hysteresis.pdf

*Time to build and aggregate fluctuations* by F.E. Kydland and E.C. Prescott

https://www.jstor.org/stable/1913386?seq=1

*The Dynamic Effects of Aggregate Demand and Supply Disturbances* by Olivier Jean Blanchard and Danny Quah

https://www.jstor.org/stable/1827924?origin=JSTOR-pdf&seq=1

David’s blog: macromarketmusings.blogspot.com

David’s Twitter: @DavidBeckworth