Recent Posts

Highlighted

Archives

More...

Important Graphs

 NewImage Untitled 7
Untitled 5
Brad DeLong We Can No More Afford to Elect Ryan Romney than Britain in 2010 Could Afford to Elect Cameron Osborne Clegg
Brad DeLong

"A Rising, Not a Setting Sun..."

Categories

Reference Section

« United States Senate Republican Policy Committee: The Constitutional Option: The Senates Power to Make Procedural Rules by Majority Vote | Main | Fun fact: in the end the national poll that might have been the most accurate was the Rand poll »

November 29, 2012

The Collapse of Long-Run Potential GDP Estimates Continues…

Some happy thoughts…

NewImage

NewImage

NewImage

  • CBO estimates of potential GDP closely track private-sector estimates of potential GDP.
  • The gap between actual and potential GDP right now is still 6.6%.
  • There is still lots of space for the CBO to mark down potential GDP: with no gap-closing 2017:IV potential GDP would be $15.2 trillion—8.6% below its 2007-vintage forecast.
  • The CBO is currently forecasting a 3.5%/year real GDP growth rate over the next five years.
  • To return us to the 2007-vintage potential GDP path would require a growth rate averaging 5.3%/year over the next five years.

November 29, 2012 at 05:58 AM |

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00e551f080038834017ee5bcb63e970d

Listed below are links to weblogs that reference The Collapse of Long-Run Potential GDP Estimates Continues…:

Comments