Output Gap

Output Gap Most Negative Since 1980

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This article will pack in as many economic signals as possible without it being too overwhelming. The list below shows 5 groupings of indicators which tell us the likely future performance of the consumer. The situation looks great as 17 out of 18 indicators are favorable and only one is…CONTINUE READING

Link Between Inflation & Output Gap

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The output gap is the highest since the 1970s suggesting that inflation should be significantly increasing in the coming years. However, can the two indicators both be correct, with there being subdued inflation as measured currently and with the economy above its potential?

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Output Gap: A Recession Timing Indicator

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Output Gap Explained The output gap is the difference between actual and potential economic output and is used by economists to understand the health of the economy. There will never be a metric which tells us how the economy will perform with absolute certainty. Not only is it difficult to…CONTINUE READING