Analyzing the attitude of the City of London towards the euro can seem a bit strange today, at a time when Great Britain has still not joined the eurozone and even tries to organize a referendum about Britain's EU membership. One should not forget that in January 2013 Prime Minister David...

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...