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Using European Commission real-time data, we show that potential output (PO) estimates were substantially and persistently revised downwards after the Great Recession. We decompose PO revisions into revisions of the capital stock, trend labor, and trend total-factor productivity (TFP)....
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This paper is devoted to the ability of selected European countries to face the potential economic crisis caused by COVID-19. Just as other pandemics in the past (e.g., SARS, Spanish influenza, etc.) have had negative economic effects on countries, the current COVID-19 pandemic is causing the...
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Front -- Contents -- Introduction -- Austere ideas for austere societies from Aristotle to Aquinas -- Austerity v …. reason from Mandeville to Voltaire -- Austerity for capitalism from Smith to Weber -- Austerity for stability from the Great … War to the next -- Austerity can wait Keynes -- Austerity for the state Hayek -- Austerity for the planet green ideas of …
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Monitoring the behavior of potential output helps policymakers implement appropriate policies in response to an economic crisis. In the short-run, estimates of the output gap can guide the timing of the implementation and withdrawal of stimulus measures. In the medium- to long-term, these...
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