IDEAS home Printed from https://ideas.repec.org/p/spo/wpmain/infohdl2441-248c17h0i8asp35af48q3bv1v.html
   My bibliography  Save this paper

Should we still use the concept of potential growth ?

Author

Listed:
  • Catherine Mathieu

    (Observatoire français des conjonctures économiques)

  • Henri Sterdyniak

    (Observatoire français des conjonctures économiques)

Abstract

The concepts of potential output level and growth survived the 2008 crisis and are still widely used in economic policy debates. The paperdiscusses thetheoretical foundations and empirical assessments of these concepts. Potential output may refer to different concepts, depending on the constraints taken into account. Potential output cannot be assessed without a complex macroeconomic analysis.The paper discusses recent empirical work on potential growth estimates,especially how they introduce a break in potential growth after the 2008 crisis, and how the methods used oftenjustify procyclical policies. For the future,the problem isnot a slowdown in potential growth butthe inability of developed economies,underglobalisation constraints, to reach afull-employment growth.

Suggested Citation

  • Catherine Mathieu & Henri Sterdyniak, 2015. "Should we still use the concept of potential growth ?," Sciences Po publications 2015-30, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/248c17h0i8asp35af48q3bv1v
    as

    Download full text from publisher

    File URL: https://spire.sciencespo.fr/hdl:/2441/248c17h0i8asp35af48q3bv1v/resources/document.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catherine Mathieu & Henri Sterdyniak, 2019. "On public debt in the euro area," SciencePo Working papers Main hal-03403548, HAL.
    2. repec:hal:spmain:info:hdl:2441/6ii0ap3lau824p8g1q3n4jens3 is not listed on IDEAS
    3. Nacho Alvarez & Catherine Mathieu & Henri Sterdyniak, 2019. "Towards a progressive EMU fiscal governance," Sciences Po publications 13, Sciences Po.
    4. Catherine Mathieu & Henri Sterdyniak, 2021. "Vers une réforme des règles budgétaires dans la zone euro ?," SciencePo Working papers Main hal-03474871, HAL.
    5. Catherine Mathieu & Henri Sterdyniak, 2022. "Towards New Fiscal Rules in the Euro Area?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(1), pages 16-20, January.
    6. repec:hal:spmain:info:hdl:2441/pm9j25k5p9bc8fsjhn1ov51ca is not listed on IDEAS

    More about this item

    Keywords

    potential growth; euro area governance;

    JEL classification:

    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spo:wpmain:info:hdl:2441/248c17h0i8asp35af48q3bv1v. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Spire @ Sciences Po Library (email available below). General contact details of provider: https://edirc.repec.org/data/ecspofr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.