{"id":1090,"date":"2017-07-04T05:53:10","date_gmt":"2017-07-04T12:53:10","guid":{"rendered":"http:\/\/www.thomaspalley.com\/?p=1090"},"modified":"2018-12-11T18:27:30","modified_gmt":"2018-12-12T01:27:30","slug":"a-theory-of-economic-policy-lock-in-and-lock-out-via-hysteresis-rethinking-economists-approach-to-economic-policy","status":"publish","type":"post","link":"https:\/\/thomaspalley.com\/?p=1090","title":{"rendered":"A Theory of Economic Policy Lock-in and Lock-out via Hysteresis: Rethinking Economists\u2019 Approach to Economic Policy"},"content":{"rendered":"<p>This paper uses hysteresis to develop the concept of policy lock-in and lock-out. Policy changes may near-irrevocably change the economy\u2019s structure, thereby changing the distribution of wealth, income and power. That may lock-in policy by changing the political equilibrium. Exit costs that block policy reversals also cause lock-in. Conventional thinking treats policy as a dial which is adjusted according to the economy\u2019s state. Policy lock-in questions the dial formulation and raises new issues for optimal policy design. It also offers insights into economic and political crisis theory. Policy lock-in is illustrated with examples that include tax policy, government spending, the euro, globalization, and the neoliberal policy experiment. <a href=\"http:\/\/www.economics-ejournal.org\/economics\/journalarticles\/2017-18\/\" rel=\"nofollow\">READ MORE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This paper uses hysteresis to develop the concept of policy lock-in and lock-out. Policy changes may near-irrevocably change the economy\u2019s structure, thereby changing the distribution of wealth, income and power. That may lock-in policy by changing the political equilibrium. Exit costs that block policy reversals also cause lock-in. Conventional thinking treats policy as a dial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,1],"tags":[],"class_list":["post-1090","post","type-post","status-publish","format-standard","hentry","category-economics","category-political-economy","category-1"],"_links":{"self":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/1090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1090"}],"version-history":[{"count":6,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/1090\/revisions"}],"predecessor-version":[{"id":1528,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/1090\/revisions\/1528"}],"wp:attachment":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}