No matter what we do “today”.
At Macroblog David Altig (head of research at the Atlanta Fed) “twitts” the CBO and the BEA:
Key to the CBO’s estimates is a reasonably good outlook for GDP growth after we get past 2012:
“For the 2013–2016 period, CBO projects that real GDP will grow by an average of 3.6 percent a year, considerably faster than potential output. That growth will bring the economy to a high rate of resource use (that is, completely close the gap between the economy’s actual and potential output) by 2017.”
But notes that:
The margin for slippage, though, is not great. Assuming that GDP ends 2011 having grown by about 2.3 percent—as projected by the CBO—here’s a look at gaps between actual and potential GDP for different, seemingly plausible growth rates:
Yeah, keep wishing…