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What Is the Inflation Gap? What Is the Output Gap

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What is the inflation gap? What is the output gap?


Definitions:

Montesquieu

A French political philosopher of the Enlightenment period, best known for his theory of separation of powers, which has been incorporated into many constitutions around the world.

Charles Beard

An influential American historian who proposed that the U.S. Constitution was a product of economically motivated interests.

Constitution

The system of fundamental principles or established precedents according to which a state or other organization is governed.

Economic Interests

The financial stakes or concerns in a policy, project, or action that motivates individuals, groups, or nations.

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