Sweden: Selected Issues

Author: International Monetary Fund

This Selected Issues paper describes a variety of methodologies for estimating a country's potential output level and presents empirical estimates for Sweden. The paper explains why these methods produce a variety of results, some of which are more plausible than others. The paper looks more closely at one aspect of growth in potential output: how it has been affected by the structural policy improvements of the past several years. The paper examines the pattern of output and unemployment over time to separate permanent changes from cyclical and other temporary changes.

Volume/Issue: Volume 1999 Issue 115

Publication date: October 1999

ISBN: 9781451835922

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Business and Economics , Inflation , Labor , Economics- Macroeconomics , Public Finance , ISCR , CR , pension , HP filter , growth impetus , constructed output gap , pension-rights income , Riksbank inflation forecast , headline CPI inflation , expenditure GDP ratio , Potential output , Output gap , Total factor productivity , Pension spending , Pensions , East Asia , Baltics , Western Europe , Europe

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Summary

This Selected Issues paper describes a variety of methodologies for estimating a country’s potential output level and presents empirical estimates for Sweden. The paper explains why these methods produce a variety of results, some of which are more plausible than others. The paper looks more closely at one aspect of growth in potential output: how it has been affected by the structural policy improvements of the past several years. The paper examines the pattern of output and unemployment over time to separate permanent changes from cyclical and other temporary changes.