Corpus ID: 130360227

Measuring Potential Growth in Japan: Some Practical Caveats

  title={Measuring Potential Growth in Japan: Some Practical Caveats},
  author={T. Fueki and Ichiro Fukunaga and Hibiki Ichiue and Toshitaka Sekine and Toyoichiro Shirota},
Economists at central banks and in academia have made various efforts to measure potential growth, something that cannot be observed directly. This review introduces some of these estimation techniques and applies them to the Japanese data. The estimates of the potential growth rate can differ considerably, depending on the methods used; all of these estimates are subject to substantial errors; and the reliability of the estimates is severely hampered whenever turbulence is rife in the economy… Expand