Rethinking the Response to the Great Recession

By Department of Economics on April 1, 2019

Shortly after Colgate University Professor of Economics Thomas R. Michl published a paper, “Hysteresis in a Three-Equation Model,” documenting the potentially permanent negative effects of economic crises like 2008’s Great Recession, his macroeconomics students posed a question:

What should we do about it?

Michl and Kayla M. Oliver ’17 decided to find out. In a new paper, “Combating Hysteresis with Output Targeting,” published in the January 2019 Review of Keynesian Economics, Michl and Oliver make the case for a new macroeconomic approach during economic downturns. Read the full article by Rebecca Beyer here.

Portrait of Thomas Michl