\begin{tikzpicture}

% draw axis
\draw[thick, ->] (-3cm, 0cm) node[anchor=north] {$0$} -- (2.5cm, 0cm) node[anchor=south] {$x$};
\draw[thick, ->] (-2.75cm, -1cm) -- (-2.75cm, 3cm) node[anchor=east] {$y$};

% draw branching cuts
\filldraw[fill=black!30, draw=black, dashed] (-2cm, 2pt) rectangle (2.25cm, -2pt);
\filldraw[fill=black!10, draw=black, dashed] (0.25cm, 1pt) rectangle (2.25cm, -1pt);

% draw branching points
\filldraw[fill=white, draw=black] (-2cm, 0cm) circle (2pt) node[anchor=north] {$x_{(t+1)}$};
\filldraw[fill=white, draw=black] (0.25cm, 0cm) circle (2pt) node[anchor=north] {$x_{(t)}$};
\filldraw[fill=white, draw=black] (2.25cm, 0cm) circle (2pt) node[anchor=north] {$x_{(t-1)}$};

% draw closed loop
\draw[dotted, ->] (1cm, 2pt) arc (0:350:0.75cm);

\end{tikzpicture}

% vim: ft=tex