3  These theoretical results are demonstrated in the seminal work of Kydland and Prescott (1977) and Barro and Gordon (1983). 4  See Cukierman (2008). 2  BIS central bankers’ speeches  significantly more volatile output, as some theoretical models had predicted.
Currently, Japan's economy may be referred to as being in a rehabilitation process to regain its fundamental strength. The effects of hysteresis have been pointed out in overseas economies as well. These effects have attracted increased attention, especially as the economic growth trend has shifted downward globally since the financial crisis in the latter half of the 2000s.