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...

This book gives insight on the dynamics and route of economic policies that have been taken and implemented since the point of institutional reforms in 1998 that is triggered from the context of financial crisis in 1997/1998. The condition that brought different paradigm on the landscape of...