Even if our basic theory is that economy is elastic in response to nominal stress and plastic in response to real stress, a sudden change in rigidity combined with a large nominal shock could cause a very large plastic deformation in the economy.

FORBES: NGDP in the Long Run and Economic Plasticity

Taking the stress-strain analogy seriously these sudden rigidity changes should cause the economy to be less elastic under nominal shocks, which means that some parts of the economy will never completely recover from the monetary shock.

FORBES: NGDP in the Long Run and Economic Plasticity

Curiously, at the same time, economic stress can lead to manipulation of foreign-exchange rates, usually to keep local currencies relatively low even as nominal interest rates rise with inflation.

FORBES: Markets: Risk Aversion But Not Risks Averted