Understanding Potential GDP and the Output Gap

Doreen Fagan

Open Vault from Federal Reserve Bank of St. Louis

Abstract: The output gap is the difference between an economy's actual output and its potential output. Monetary policymakers use the output gap to help inform their policy decisions.

Date: 2021-08-04
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Persistent link: https://EconPapers.repec.org/RePEc:fip:l00100:102632

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