Potential output—the maximum amount an economy can produce over the long run—is an important indicator policymakers use to gauge a country’s current economic health and expectations for future growth.

During economic downturns an economy’s output of goods and services declines. When times are good, by contrast, that output—usually measured as GDP—increases (see “Gross Domestic Product: An Economy’s ...

Total factor productivity—a measure of the efficiency with which labor and capital are used—has fallen during the current recession. But, after adjustment for lower utilization of labor and capital, ...

Thank you for inviting me here today. An important, if sometimes underappreciated, purpose of central bank speeches is to help the public understand what we are trying to achieve, and why. A greater ...