what are the types of hysteresis relevant to financial markets 
hysteresis in financial markets takes various forms including credit market hysteresis investor sentiment towards inflation or manufacturing output can hysteresis be mitigated through structural reforms preemptive structural reforms involve anticipating potential sources of hysteresis and implementing changes to enhance the flexibility and resilience of the economy labor market reforms regulatory adjustments and initiatives promoting innovation can mitigate the impact of economic shocks though there s usually greater risk in longer term policies compared to short term strategies 