This post from the Fed Reserve (see my blog tomorrow) discusses two views of the output gap. At an FTE event earlier this year, this issue was raised and both sides of the debate presented (see my blog tomorrow).
"You may have another view and, again quoting Lockhart's recent speech, "reasonable people can consider the issues...and come to different conclusions. ""
To me, productive discussion is a free examiniation and exchange of ideas, as opposed to a closeminded and pedantic rejection of any view that does not conform to pre-existing ideas or ideology.
This is a very useful post that allows for a framework to discuss the costs and benefits of national income accounting and the costs and benefits of policy based upon GDP accounting.
57 minutes ago