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This paper analyzes the sources of output and unemployment dynamics in the world economy during the Great Recession …. This analysis is based on a panel unobserved components model of the world economy, disaggregated into its fifteen largest …
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The global output gap seems to be negative but closing. According to structural estimates, the gap is still wide, particularly in the advanced economies. However, these measures may overestimate potential output, eg by not accounting for the fact that certain investments may have turned out to...
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