Steady as She Goes-Estimating Potential Output During Financial 'Booms and Busts' /

Potential output-in the sense of the GDP level or path an economy can sustain over the medium term-is a crucial benchmark for policymakers. However, it is difficult to estimate when financial 'booms and busts' are driving the real economy. This paper uses a simple multivariate filtering ap...

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Détails bibliographiques
Auteur principal: Berger, Helge
Autres auteurs: Dowling, Thomas, Lanau, Sergi, Mrkaic, Mico
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2015.
Collection:IMF Working Papers; Working Paper ; No. 2015/233
Accès en ligne:Full text available on IMF
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100 1 |a Berger, Helge. 
245 1 0 |a Steady as She Goes-Estimating Potential Output During Financial 'Booms and Busts' /  |c Helge Berger, Thomas Dowling, Sergi Lanau, Mico Mrkaic. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2015. 
300 |a 1 online resource (33 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a Potential output-in the sense of the GDP level or path an economy can sustain over the medium term-is a crucial benchmark for policymakers. However, it is difficult to estimate when financial 'booms and busts' are driving the real economy. This paper uses a simple multivariate filtering approach to illustrate the role financial variables play in driving potential or sustainable output. The results suggest that it moves more steadily during financial 'boom and bust' periods than implied by conventional HP filter estimates, which tend to more closely follow actual GDP. A two-region, multisector New Keynesian DSGE model with financial frictions sheds light on the economic forces that could be behind the results obtained from the filter. This has important implications for policymakers. 
538 |a Mode of access: Internet 
700 1 |a Dowling, Thomas. 
700 1 |a Lanau, Sergi. 
700 1 |a Mrkaic, Mico. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2015/233 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2015/233/001.2015.issue-233-en.xml  |z IMF e-Library