Sentences with phrase «potential economic output»

The output gap is the difference between actual and potential economic output.

Not exact matches

The authors said Trudeau's fiscal stimulus would add 0.5 % to economic growth this year and next, allowing the economy to reach its non-inflationary level of potential output faster than if former prime minister Stephen Harper's obsession with a balanced budget had remained Ottawa's priority.

Given these positive surprises, and because monetary policy must be forward - looking to achieve our inflation target, Governing Council's discussions focused on three main issues: first, the extent to which recent strength is signalling stronger economic momentum in Canada and globally; second, how heightened levels of uncertainty, particularly about US tax and trade policies, should be incorporated in our outlook; and third, how much excess capacity the economy currently has, and the growth rate of potential output going forward.

The Update Should Have Included Finance's View of Potential Economic Growth, the Output Gap, and how long it will take to eliminate this Gap

Yes, the G7 output gap — the difference between actual output and economic potential — is shrinking as the U.S. economy has joined Germany, the UK and Canada in running near full capacity.

At the same time, global investment spending has moderated, in part because of lower potential economic growth; firms need to invest less than they did in the past to sustain that lower potential output.

During a recent interview, Bank of Canada governor Stephen Poloz said that in the late stage of the economic cycle, «investment becomes the principle driver of growth, and that builds more capacity... raising potential output.»

That stretch of «below potential growth» means Canada is further away from reaching the level of economic output that the central bank considers to be inflationary.

Furthermore, the Fed would like to adhere to the so - called «Taylor Rule» (in spite of Professor Taylor's protestations that it is misinterpreting and misusing his concept), a mathematical construct that purports to make monetary policy more «scientific» by establishing an arithmetic rule for varying the administered interest rate according to the variance of «actual from target inflation» (note that «inflation» refers to the change in a price index in this case, not the phenomenon of inflation of the money supply as such), as well as the variance of economic output from «potential output» (i.e, the so - called «output gap» is incorporated in the formula as well).

It is possible that policy - makers might have over-estimated potential output, and hence economic slack.

Economic growth in Alberta remains positive, even when one accounts for every conceivable indirect outside force on the price of Canadian oil, no matter how tenuous the connection is: potential new Iranian supply, single - industry OPEC nations being forced to reduce output, Greece leaving the Eurozone, Donald Trump surging in the polls, Tom Brady facing suspension, etc..

In economics, «economic growth» or «economic growth theory» typically refers to growth of potential output, i.e., production at «full employment.»

Building Bricks: Exploring the Global Research and Innovation Impact of Brazil, Russia, India, China and South Korea, written by Jonathan Adams, David Pendlebury, and Bob Stembridge, highlights these countries» public and private investments in research and development, their scientific and engineering labor forces, their output of research papers and particularly active areas of research, their academic impact as measured by citations, and their economic potential based on innovation and patenting.

4 The output gap is an economic measure of the difference between the actual output of an economy and its potential output.

When the climate model output is fed into ecosystem models, and these in turn are coupled to socio - economic analysis tools, the potential future scenarios that come out, assuming the world continues its business as usual, appear rather grim, see e.g. the very interesting final report of the European ATEAM project.

A 2014 IEA report concluded, «The uptake of economically viable energy efficiency investments has the potential to boost cumulative economic output through 2035 by $ 18 trillion,» which is larger than the current size of the U.S. economy.

The IEA found that «the uptake of economically viable energy efficiency investments has the potential to boost cumulative economic output through 2035 by USD 18 trillion,» which is larger than the current size of the U.S. economy!