U.S. Real Potential GDP

U.S. Real Potential GDP U.S. real potential GDP growth is expected to fall to 1.5% from 1.7% today, due to ageing population. Image: Deutsche Bank

Why Potential GDP Has Been Cut in Half Since the 1950’s?

Why Potential GDP Has Been Cut in Half Since the 1950’s? The main reason is a lower productivity than previous business cycles, due to: – lower population growth – the service sector is growing faster than the industry sector – lower quality jobs in the service sector have a lower productivity than in the industrial…

U.S. Business Cycle: Actual vs. Potential U.S. Real GDP

U.S. Business Cycle: Actual vs. Potential U.S. Real GDP The mature phase of the U.S. business cycle began 2 years ago. If inflation remains stable and the Fed avoids restrictive monetary policy, then the risk of recession is reduced. Image: NBF Economics and Strategy