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This paper argues that incorporating information about the financial cycle is important to improve measures of potential output and output gaps. Conceptually, identifying potential output with non-inflationary output is too restrictive. Potential output is seen as sustainable; yet experience...
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from millions of digitized books for the USA, UK, Germany, France, Italy and Spain. While existing measures go back at most …
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, Italy and Spain). To highlight some results, we find a positive short-run effect for GDP and life expectancy on subjective …
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