The output gap is approximated using Okun’s law; specifically, Yt = 2.0(U* – Ut), where U is the unemployment rate and U* is the non-accelerating inflation rate of unemployment, or NAIRU. 21 See, for example, Board of Governors of the Federal Reserve System (2016), “Federal Reserve Issues FOMC Statement,” press release, November 2, paragraph 4, https://www.federalreserve.gov/newsevents/press/monetary/20161102a.htm.
We need you to show the nation how to plow the path toward a higher road. Thank you very much for your attention and best wishes in all of your work. 6  BIS central bankers’ speeches