A cure for hysteresis

There you go. Within minutes of my post on Gavyn Davies’ post on ‘Post-crisis macro-economic thinking’, I came across this article by one Claire Jones in FT on hysteresis in the Eurozone. It vindicates the point made in the previous post, ‘The Answer’. We, humans, can only find answers that we know, regardless of whether that is what the problem needs. We are like the men with hammer. Everything is a nail. How to solve hysteresis? Simple. The European Central Bank could have done QE earlier! Oh, well!

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