In response to loss of balance, the baby arches his back, flings his arms outwards, extends his legs, and opens his hands, after which he slowly returns to a flexed position, often resembling an embrace. The response disappears around 3 - 5 months of age. Ernst Moro -- German children's doctor (1874-1951)
It is suggested that the Moro reflex has survival value. When losing balance, the baby clings to the mother (supposedly with skin hair).
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