Joe Gagnon on *25 Years of Excess Unemployment* and the Phillips Curve Debate
Macro Musings with David Beckworth
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How to Measure Real Time Slack in the Economy?
There's been a lot of interesting work on this challenge that the Fed faces and other central banks face in understanding real time slack. How did you come up with a more precise measure? Oh, precise is the wrong word to you. But it was what the last thing I did before publishing the paper and I thought about better ways to do it since. And I think there's some sense in which countries were close to potential at least once. A lot of them, that would have been in 2007, just before the financial crisis in the US. It was in 2000. In some countries, probably it was not at all like Japan, I don't think it was ever. The only common
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