Steady as she goes : estimating potential output during financial "booms and busts" /

Steady as she goes : estimating potential output during financial "booms and busts" /

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Bibliographic Details
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2015.
Description:	1 online resource (33 pages) : color illustrations.
Language:	English
Series:	IMF working paper, 1018-5941 ; WP/15/233 IMF working paper ; WP/15/233.
Subject:	Gross domestic product. Input-output analysis. Credit. Credit. Gross domestic product. Input-output analysis.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12505574

Hidden Bibliographic Details
Other authors / contributors:	Berger, Helge, (IMF staff) Dowling, Thomas, (IMF staff) Lanau, Sergi, (IMF staff) Lian, Weicheng, (IMF staff) Mrkaić, Mićo, (IMF staff) Rabanal, Pau, (IMF staff) Sanjani, Marzie Taheri, (IMF staff) International Monetary Fund. European Department.
ISBN:	1513503278 9781513503271 9781513599304 1513599305
Notes:	"Prepared by Helge Berger, Thomas Dowling, Sergi Lanau, Weicheng Lian, Mico Mrkaic, Pau Rabanal, and Marzie Taheri Sanjani." "November 2015." "European Department." Includes bibliographical references (pages 23-25). Online resource; title from pdf title page (IMF.org Web site, viewed November 11, 2015).
Summary:	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.--Abstract.
Other form:	Print Version: 9781513503271
Standard no.:	10.5089/9781513503271.001 9781513599304

Description
Summary:	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.
Item Description:	"Prepared by Helge Berger, Thomas Dowling, Sergi Lanau, Weicheng Lian, Mico Mrkaic, Pau Rabanal, and Marzie Taheri Sanjani." "November 2015." "European Department."
Physical Description:	1 online resource (33 pages) : color illustrations.
Bibliography:	Includes bibliographical references (pages 23-25).
ISBN:	1513503278 9781513503271 9781513599304 1513599305
ISSN:	1018-5941 ;