Kangur, Alvar; Kirabaeva, Koralai; Natal, Jean-Marc; … - 2019
We study the properties of the IMF-WEO estimates of real-time output gaps for countries in the euro area as well as the … potential. In real time, output gaps tend to have large and negative averages that are largely revised away in later vintages … of the economy's potential capacity. We also find, in line with earlier literature, that real-time output gaps are not …