Basu, Susanto; Fernald, John G. - Federal Reserve Bank of San Francisco - 2009
, at business cycle frequencies, potential output is a smooth series. Discussing these points allows us to discuss a range …Potential output is an important concept in economics. Policymakers often use a one-sector neoclassical model to think … about long-run growth, and often assume that potential output is a smooth series in the short run--approximated by a medium …