potential output

But it had big benefits on the aggregate supply side, as it complemented private sector initiative in expanding potential output.

These "fundamental determinants of the growth of potential output do not seem to have deteriorated at all, " he said.

One small turbine at Lerwick, known as Betsy, is believed to be the world's most productive, reaching 59% of its potential output.

This time round, the credit crisis reduced potential output not in the energy-intensive but in the credit-intensive part of the economy.

The unemployment rate has come down anyway, more due to a puzzling lack of labour force growth than to above-potential output growth.

These labour-markets shifts are the main reason to be pessimistic about America's potential output growth.

If the surplus countries do not expand domestic demand relative to potential output, the open world economy may even break down.

The central bank defines that as the difference between actual output and potential output, expressed as a percentage of potential output.

Moreover, it does not make much difference if the loss of potential output now were to be 5 per cent or even 10 per cent.

If domestic spending rises relative to potential output, the current account surplus will diminish automatically.

This is the difference between actual industrial output and an estimate of potential output, expressed as a percentage of potential output.

The world needs the big surplus countries to sustain a higher rate of growth in demand than in potential output, to reduce their surpluses.

Second, economic models often revise historical estimates of potential output with the benefit of hindsight.

With only one-third of the screen occupied by each primary, two-thirds of the potential output is wasted.

The IT-induced productivity revolution, which sent potential output soaring at the end of the 1990s, has waned.

Spending at home must still rise sharply and sustainably, relative to growth of potential output.

In other words, it is an estimate of the effect on the potential output of the American economy.

But the reductions in potential output are more important: they represent losses for ever.

As a result, potential output can temporarily diverge from its underlying trends, making it even harder to estimate.

The OECD now reckons that the fallout from the financial crisis will, on average, knock some 3% off rich countries' potential output.

That recessions can reduce potential output is not controversial.

Cost-push inflation, also called "supply shock inflation, " is caused by a drop in aggregate supply (potential output).

But that in turn, will only happen if surplus countries expand demand faster than potential output.

The OBR has not just changed its expectations of potential output.

Given the huge capital inflow, the Fed's monetary policy had to generate a level of demand well above potential output.

But in the end the economy will bounce back and close the gap between actual and potential output.

The financial crisis has "destroyed" a lot of potential output, thereby reducing the economy's growth potential.

Potential output is growing even as actual output and employment stutter.

Higher tax rates mean reduced work incentives and lower potential output.

Output gaps measure the difference between actual output and potential output and have an attractive simplicity for policymakers.

Just how far below its potential output the economy is operating is a vexed question.

It requires aggregate demand to return to, and exceed, potential output.

Thus, the Treasury has decided that the UK's potential output suddenly fell by 5 per cent during this crisis.

we are measuring only absolute changes in income, not gaps relative to potential output.

This is especially true of commodities, but is also driven by declining potential output growth in the US and western Europe.

In the OBR's November forecasts it further lowered potential output at the start of 2016 by 3. 5 per cent.

The world's potential output is also being lifted by rapid productivity gains in developing countries as they try to catch up with the West.

According to the OECD, in 2010 the G7 economies were anywhere between 2. 4% (Japan) and 4. 7% (Italy) below potential output.

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