Cognitive Scaffold

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MENTAL MODEL · M5527

Hysteresis Loop

Hysteresis Loop
BusinessHigh supportEconomics
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Updated 2026-08-05

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INTRODUCTION

English translation pending.

CORE DEFINITION

In ferromagnetic materials, magnetization depends not only on the current field but on the prior magnetization history; when the field is removed, residual magnetism remains and the path is irreversible. Generalized to economics, the same logic holds: after stimulus is withdrawn, markets do not retrace their path but retain residues such as inflation expectations and investment habits. The key condition is path dependence, in which identical inputs produce different outputs depending on the trajectory already taken.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

- Residual memory: check what residue a policy or event leaves behind after the stimulus itself is removed. - Path mapping: trace the loading and unloading curves separately instead of assuming symmetry. - Reversal test: ask what 'returning to the past' would actually restore, given that history is conserved.

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The output of the system depends on the current input plus the accumulated state. Loading and unloading follow different curves that enclose a loop, so the system never returns exactly to its starting point and always carries its history forward.

MINIMUM ACTION

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Source support: Explicit

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