This article explores the implications of hysteresis for the welfare costs of recessions by
extending the textbook New Keynesian model to include hysteresis. Hysteresis implies that …

In Sweden and many other countries, the framework for stabilisation policy prior to the global
financial crisis was aimed at monetary policy playing the lead role and fiscal policy playing a …

Lucas (1987, 2003) finds that the welfare costs of business cycles are trivial, 0.008-0.05% of
consumption in each period. I analyze the implications of hysteresis for the welfare costs of …

I såväl Sverige som många andra länder var ramverket för stabiliseringspolitiken före den
globala finanskrisen inriktat på att penningpolitiken skulle spela huvudrollen och att …