Hysteresis in economics: analysis of the relationship between business cycles, economic growth, and economic policy

Introduction. The article analyzes the relationship between business cycles and economic growth, and reviews the evolution of this issue from the traditional denial of any connection to an alternative theory known as hysteresis. The main focus is on examining policy solutions efficiently countering structural changes induced by recessions. It is crucial to emphasize that the study of hysteresis remains highly relevant as this mechanism can be a key element in shaping efficient economic policies. These strategies, in their turn, aim at overcoming structural obstacles and promoting sustainable economic growth.