These days everyone has an output gap, but a cross-country look still raises questions. How can Italy (IT) have the same output gap as New Zealand (NZ), when Italian real GDP is down 22% since end-2007, while New Zealand is up 19%?


The output gap is an economic measure of the difference between the actual output of an economy and its potential output. 

Nonsense by Design

Believieving "output gaps" can be accurately measured or one should even try is the real problem.  Potential output vs real output? Please!

By definition, output gaps are "nonsense"

Like the Phillips Curve, output gaps are another economic idea that belongs in the ashcan.

Regarding the Phillips Curve

  1. Fed Study Shows Phillips Curve Is Useless: Admitting the Obvious
  2. Yet Another Fed Study Concludes Phillips Curve is Nonsense

Despite being proven useless, economists, even the Fed (despite their own studies) still cling to to the idea.

Brooks' Observation

Brooks' observation is enough to prove the silliness of output gap measurement, but that will not stop any economists from trying to measure them.

Nonsensical output gap measurements will cease the moment economists stop attempting to measure them, not before.


Allegedly, There is a Gender Gap in Economics

The economics profession supposedly has a diversity problem. I have a few questions.

Yet Another Fed Study Concludes Phillips Curve is Nonsense

Proponents of the Phillips Curve keep looking for ways in which it works. Yet, another study concludes it doesn't.

Global Pension Gap Expected to Hit $400 Trillion: US Leads the Way

The global pension gap of 8 nations is $70 trillion. The US alone is $38 trillion. By 2050 the total gap will hit $400T.

US Futures Poised to Gap Down on Coronavirus Scare: What Then?

US futures are poised to gap down at the Monday opening. Things can easily change overnight but this is likely to stick.

Mercy! Whopping Race Gap Discovered in Professional Sports

Today I learned there is an embarrassing situation in the NFL. Let's investigate further.

Nonsensical Idea of the Day: All Whites to Blame for New Zealand Massacre

The nonsensical idea of the day award goes to Rachel Withers who proposes all whites are to blame for a massacre in NZ.

Total Collapse of the People's Vote Campaign

The anti-Brexit People's Vote campaign has disintegrated in to an open feud among 9 sub-groups.

Mind the Gap, It Closed Bearishly On Wednesday

The gap down on Monday filled on Wednesday, then stocks sank into the close. This was a very bearish event.