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A common practice in decomposition analyses is to deflate output indicators to purge the impact of inflation by using a general deflator. This practice fails to account for sector heterogeneity and can be hazardous. Although the general indentified patterns are largely correct, the calculated...
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"The Great Recession" was preceded by a prolonged period of high growth accompanied by low and stable inflation, the so called "The Great Moderation". In Spain, a similar pattern was observed: in fact, potential growth estimates were trending upwards, implying that output gaps remained...
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assessed. Looking ahead, the paper presents medium-term paths for GDP based on alternative assumptions for productivity growth … total factor productivity growth. Economic policy reforms and the introduction of NAFTA may have raised trend productivity … growth in recent years. Further increases in productivity growth would appear necessary, however, to raise medium-term growth …
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According to the IMF subject information, output gap for advanced economies and specifically Greece is calculated as the actual GDP less the potential GDP divided by the potential GDP and expressed as a percentage. Divergence or difference between actual and potential output is known as output...
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