New model shows eurozone output gap remains large, researchers argue

ecb-frankfurt-3
The European Central Bank

The eurozone has a large output gap, contrary to the proponents of the "secular stagnation" thesis, a working paper published by the European Central Bank argues.

In An inflation-predicting measure of the output gap in the euro area, Marek Jarociński and Michele Lenza present a Bayesian dynamic factor model of the eurozone as a means to estimate the eurozone's output gap. They define this as the "deviations of output from its trend that are consistent with the behaviour of inflation".

The

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.