Comments on: The Legacy of the Economic Crisis http://dmarron.com/2010/03/14/the-legacy-of-the-economic-crisis/ Musings on Economics, Finance, and Life Mon, 13 Feb 2012 20:27:13 +0000 hourly 1 http://wordpress.com/ By: Brooks http://dmarron.com/2010/03/14/the-legacy-of-the-economic-crisis/#comment-2195 Mon, 15 Mar 2010 00:31:42 +0000 http://dmarron.com/?p=2838#comment-2195 thanks Donald

]]> By: Brooks http://dmarron.com/2010/03/14/the-legacy-of-the-economic-crisis/#comment-2194 Mon, 15 Mar 2010 00:29:16 +0000 http://dmarron.com/?p=2838#comment-2194 thanks

]]> By: Donald Marron http://dmarron.com/2010/03/14/the-legacy-of-the-economic-crisis/#comment-2192 Sun, 14 Mar 2010 23:44:43 +0000 http://dmarron.com/?p=2838#comment-2192 Hi Brooks — These figures are intended to represent a shift downward in potential GDP. The one thing I can’t tell precisely from the OECD report is how long they think this will persist. In the space of two page, they refer to this as a decline in “medium-term potential”, a decline in “potential output over the long term”, and as a “permanent GDP loss.” My best guess is that it’s intended as a prolonged but not literally permanent decline in the level of potential GDP.

]]> By: Brooks http://dmarron.com/2010/03/14/the-legacy-of-the-economic-crisis/#comment-2188 Sun, 14 Mar 2010 16:12:37 +0000 http://dmarron.com/?p=2838#comment-2188 Donald,

Are those figures for loss of GDP truly “permanent” in the sense of some enduring magnitude, or just a present value measure that reflects lower GDP for many years but eventual narrowing of the gap (to less than each given loss figure) vs. the previously (pre-crisis) projected long-term path, or perhaps even eventual elimination of that gap?

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