Description

This paper develops a simple model for measuring potential output that uses data on inflation, unemployment, and capacity utilization. We apply the model to 10 countries, in addition to the United States and the euro area. While there is a substantial amount of uncertainty around our estimates, we find that the financial crisis has resulted in a reduction in potential output.

Taxonomy

Economic policy , Financial crisis , Fiscal policy , Inflation , International financial system , Monetary policy

More publications in this series: Working Papers

More publications by: Jaromir Benes ; Marianne Johnson ; Kevin Clinton ; Troy Matheson ; Petar Manchev ; Roberto Garcia-Saltos ; Douglas Laxton