Tuesday, 19 February 2013
A while ago I wrote a post about the problem that self-adjusting mechanisms of a market economy are likely to resolve a crisis like the current one, but this takes so long that in the meantime you produce a lost generation. And that's not only bad for the generation, but also for the economy. Trained engineers who are forced to flip burgers for a decade become unemployable in their profession and growth prospects are damaged in the long term. I had a vague a recollection that there's a word for that. Now I know what it is, thanks to a great article by Miller and Skidelsky in the FT. It's 'hysteresis'. Write it down, learn it and start to impress people.