Should-Read: Nick Bunker: Measuring potential GDP in the United States, and the case for emphasizing demand in monetary policy: "Olivier Coibion... Yuriy Gorodnichenko and Mauricio Ulate... http://equitablegrowth.org/equitablog/value-added/measuring-potential-gdp-in-the-united-states-and-the-case-for-emphasizing-demand-in-monetary-policy/

...the construction of different measures of potential GDP and finds that the estimates often used are not necessarily good measures of the actual productive capacity of the economy. The reason, they say, is that the estimates are overly influenced by short-term demand-side fluctuations in GDP...

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