Potential output, or Y*, is the level of output that is sustainable, and is a useful conceptual tool in gauging aggregate output consistent with stable inflation.14 In our 3 / 11  BIS central bankers' speeches  framework, the difference between the actual level of output and the level of potential output – the output gap (figure 2) – is a key influence on inflation.
According to a January 2009 Information Memorandum from the Housing and Development Corporation (HDC), there is an acute shortage of housing in Trinidad and Tobago. About 107,000 applications for housing are on the database held by the Ministry of Housing in a country with a population of 1.3 million people.