The gap between the actual and potential gross domestic product narrowed dramatically during the second quarter of the year. Real GDP grew by more than 12% on a year-over-year basis while nominal GDP in current dollar terms grew at a nearly 17% yearly rate. That was enough to reduce the already ... READ MORE >
output gap
Closing Canada’s output gap with a little help from its friends
The developed economies of the world are on the verge of recovery, the pace of which will depend on how fast vaccinations are administered and when confidence in personal interaction is restored. The Organization for Economic Co-operation and Development’s latest economic outlook put it succinctly: ... READ MORE >
How to bridge the output gap and return the economy to full employment
Negotiations between the Biden administration and the GOP minority in the Senate reveal strengths and shortcomings in their policy preferences and objectives about how to promote an economic recovery. Through it all, estimates of the domestic output gap – the difference between actual and potential ... READ MORE >