What is hysteresis?

It refers to the extreme reaction (hysteria) savers and investors sometimes have to declining conditions in equity (stock) markets.

The idea that when high rates of unemployment persist, workers lose skills or are seen by employers as lacking current skills, and some of the long-term unemployed become discouraged and quit the labor force permanently.

The idea that when a country has a low interest rate for a long time, the natural rate of unemployment will increase.

A temporary deviation from an economic equilibrium, especially after severe economic shocks.