The global output gap: measurement issues and regional disparities

Petra Gerlach-Kristen

BIS Quarterly Review, 2011

Abstract: The global output gap seems to be negative but closing. According to structural estimates, the gap is still wide, particularly in the advanced economies. However, these measures may overestimate potential output, eg by not accounting for the fact that certain investments may have turned out to be unproductive. Purely statistical estimates, on the other hand, suggest that the global output gap has already closed in both the advanced and the emerging market economies, but statistical measures are subject to an end-point problem that too often makes them signal a closed gap at the current edge.

JEL-codes: E32 (search for similar items in EconPapers)
Date: 2011
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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