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. … READ MORE >
output gap
Closing Canada’s output gap with a little help from its friends
While the American economy is expected to exceed its pre-pandemic projection by 0.2% this year, Canada is expected to undershoot by 3.2%. It is in every nation’s best interest to work for the success and health of all economies. … READ MORE >
How to bridge the output gap and return the economy to full employment
Our estimate of what that will take to close the output gap and return to full employment strongly implies the need for roughly $2 trillion in fiscal aid. … READ MORE >