The output gap is a measure of how far away an economy is from a targeted level of output. But does it matter? The concept of an output gap forms a key part of the argument put forth by “saltwater” ...

MY COLLEAGUE makes many excellent points in this morning's post on potential output. We are, for the most part, singing from the same hymnal. For the most part, but not entirely. I must take issue ...

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...

The paper constructs a new output gap measure for Vietnam by applying Bayesian methods to a two-equation AS-AD model, while treating the output gap as an unobservable series to be estimated together ...

The output gap measures how far the economy is from its full employment or “potential” level that depends on supply-side factors of the economy: the supply of workers and their productivity. During a ...

Get your news from a source that’s not owned and controlled by oligarchs. Sign up for the free Mother Jones Daily. “Potential GDP” is the size of the American economy if it’s running at full steam.

The link between changes in U.S. inflation and the output gap has weakened in recent decades. Over the same time, a positive link between the level of inflation and the output gap has emerged, ...

MANILA (Philippine Daily Inquirer/Asia News Network): The Philippines’ output gap — its actual economic output during the Covid-19 crisis versus its maximum prepandemic potential — is the highest in ...

The output gap is the difference between an economy's actual output, otherwise known as gross domestic product (GDP), and what it would be if that country's industries were working flat out. The ...