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” ...

The U.S. economy will perform well below potential in 2021, according to the Congressional Budget Office outlook issued Monday. The output gap – the difference between gross domestic product as ...

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 ...

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 ...

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 ...

I want to show you something. This goes to the heart of Australia's macro-economic management. It determines the quality of life of millions of us, and the forecasts in the federal budget, but few ...

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 ...

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, ...

IT TOOK barely a month for the bubble of optimism that formed over the American economy at the start of the year to deflate. Job growth slowed sharply in December, and stayed weak in January, ...

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 ...

Investors might start hearing a lot more about the output gap, an obscure metric Wall Street professionals historically have used to predict changes in Federal Reserve monetary policy and the ...