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Is the Output Gap a Faulty Gauge for Monetary Policy?, No. 10-01

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Is the Output Gap a Faulty Gauge for Monetary Policy?, No. 10-01

DATE: January 2010

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ABSTRACT: Policymakers look to the output gap as a measure of how the economy is performing. However, different methods of computing the output gap can lead to vastly different results, rendering it a potentially poor guide.

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Lubik, Thomas A. , Slivinski, Stephen and Federal Reserve Bank of Richmond. "Is the Output Gap a Faulty Gauge for Monetary Policy?, No. 10-01," Economic Brief (January 2010). https://fraser.stlouisfed.org/title/6034/item/583872, accessed on December 8, 2023.

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