Anderton, Robert Aranki, Ted Dieppe, Alistair Elding, Catherine Haroutunian, Stephan Jacquinot, Pascal Jarvis, Valerie Labhard, Vincent Rusinova, Desislava Szörfi, Béla
Year of Publication:
ECB Occasional Paper 156
This paper reviews potential output from a euro area perspective by summarising the developments according to international institutions and assessing the impact of the crisis. The paper also considers the methodological basis for potential output estimates, and the high degree of uncertainty that surrounds them. Although it is too early to see the full effects of structural reforms implemented since 2007/08, further structural reforms are needed to support euro area potential growth, especially in view of the negative impact that population ageing is expected to have on potential growth in the future.
output gap potential output production function structural reforms