It should also be noted that the U.S. economy is closer to the center of the pack instead of an outlier when the volatility of the real economy is measured in terms of output gaps rather than unemployment gaps. 24  See Smets and Wouters (2005) and Christiano, Motto, and Rostagno (2007).
8  BIS Review 95/2008  •  First, the horizon for the projections on output growth, unemployment, and inflation should be lengthened. This change might involve simply an announcement of FOMC participants' assessment of where inflation, output growth, and unemployment would converge under appropriate monetary policy in the long run.