The path out of economic decline is much steeper than the path into it because of hysteresis effects: prolonged negative growth among a young male population raises crime, destroys incentives for human-capital accumulation and savings, and creates behavioral and cultural challenges that persist after macro stabilization.

causalpending

Speaker

Peter Henry

Evidence Quote

the path back out of decline... the gradient coming out is much higher because... the hysteresis effects

Source

Peter Henry on Growth, Development, and Policy 07/27/2009EconTalk
Created: 6/17/2026, 10:31:29 AM

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