The notion of the output gap is crucial in understanding underlying economic trends. The macroeconomic stabilization …

We find that, while different models used to estimate the output gap in five major emerging economies show similar … trends over time, they lead to different conclusions about how well the output gap can predict inflation. This suggests that … the choice of model can significantly impact the conclusions drawn about the relationship between the output gap and …

In this paper, we examine whether domestic or global output gap affects inflation in three panels: the European Union … show that after the crisis the global output gap predicts the evolution of inflation in the Eurozone panel. On the other … hand, the domestic output gap predicts inflation in the European Union. In the precrisis period, the determinant of …