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Schembri: The (Mostly) Long and Short of Potential Output
Thank you for inviting me here today. An important, if sometimes underappreciated, purpose of central bank speeches is to help the public understand what we are trying to achieve, and why. A greater understanding of our monetary policy actions helps make them more effective. And as a public institution, we have an obligation to highlight and demystify the concepts that guide our thinking in a way that all interested citizens, not just the experts in this room, can grasp. Few in the public likely give much thought to potential output, for example. Yet this somewhat abstract notion is vital to how most central banks ... (full story)