Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Thank you. That was very interesting. I have a couple of questions about your counterfactuals. In exhibit 6, you look at the simulated rate of unemployment, assuming that gross domestic income is the true measure of output, and you find that unemployment fits Okun’s law. But then below you also use GDI to measure productivity. You’re not doing the same thing in both simulations, right? If you assume that GDI measures output and use it to calculate both Okun’s law and productivity, I think the puzzle comes back. I think you just increased potential output, and you’re back to where you started.

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