how to prevent hysteresis
economies that are experiencing a recession and hysteresis in which the natural rate of unemployment is rising usually employ economic stimulus to combat the resulting cyclical unemployment expansionary monetary policies by central banks such as the federal reserve can include lowering interest rates so as to make loans cheaper and help stimulate the economy an expansionary fiscal policy might also include increases in government spending in regions or industries that are most affected by unemployment however hysteresis is more than cyclical unemployment and can persist long after the economy has recovered for long term issues such as a lack of skills due to workers displaced by technological advances job training programs might be helpful to combat hysteresis 