Notas del episodio
Episode Notes: Comparing Measures of Potential Output
Leer más- Introduction:
- Topic Overview: Exploring methods of measuring potential output & implications for stabilization policy.
- Definition: Potential output is an economy's sustainable output level without inflationary pressures, serving as a benchmark for policymakers.
- Measurement Methods:
- Statistical Filters: Hodrick-Prescott filter extracts a trend from data.
- Structural Models: Use determinants like labor force rates & productivity growth.
- Evaluation Challenges:
- No Absolute Truth: As potential output is latent, it's hard to benchmark accuracy.
- Policy ...