Eurozone may be close to potential growth – ECB paper
But all estimates of potential GDP should be treated with caution, researchers argue
Eurozone inflation may revive as actual GDP growth outstrips its long-running non-inflationary rate, a pre-released paper from the European Central Bank’s (ECB) latest economic bulletin argues.
In Potential output in the post-crisis period, Malin Andersson, Bela Szörfi, Máté Tóth and Nico Zorell advise approaching all estimates with caution.
The authors stress that all of the available methods for estimating potential output are “subject to considerable uncertainty and often revised heavily
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