"The gap between the supply and demand in the January-March quarter, plus the width is the size since just before the Lehman crisis

The supply-demand gap in the January-March quarter released by the BOJ on Friday was plus 0.79%, and the positive width increased by 0.22 points from the October-December period (plus 0.57%) in 2016. The supply-demand gap will be positive for the third consecutive quarter from the July-September quarter of 16th, the positive range since the April-June quarter of 2008 (plus 0.96%) just before the Lehman shock. In addition to improvements in capital side capacity utilization rates such as production facilities, labor supply and demand has further tightened.
The supply-demand gap shows the demand-supply ratio of the economy as a whole. When the figure becomes positive, it indicates excess demand and the price tends to rise. The Bank of Japan publishes estimates of the supply-demand gap every three months. The BOJ expects prices to rise toward the target of 2% against the backdrop of improvements in the macroeconomic supply-demand gap and the rise in the expected inflation rate in the medium to long term. (Abbreviated) "

Ah ~ ha ~ · · · · ·.

In the first place, it is strange when the supply-demand gap (= nominal GDP - potential GDP) becomes positive. The fact that the supply-demand gap is positive means that we are "purchasing unproductive goods and services."

In the example of the previous athlete,
"If you deduct the latest time (example: 9 seconds) from the maximum potential time that you can potentially offer (eg 10 seconds), the value has become positive (ex: 1 second)"
It is a story.

Just a moment, it means that the fact that "= maximum potential time - latest time" has become positive means that the thing which was regarded as "the maximum potential time" was not so in fact.

Similarly, the fact that the supply-demand gap pluses means that the potential GDP is nothing "maximum value of GDP that can be produced" (actually, it is nothing).

Moreover, since the GDP deflator is minus (apparently deflation), the BOJ's potential GDP is omitted because it eliminates the productivity improvement factor of TFP, "the supply-demand gap is positive for the third consecutive quarter! It will be such a strange situation that such as "It is.

Whether it is the Bank of Japan or the Cabinet Office, the current definition of "potential GDP" is incorrect and gives misunderstandings to citizens and politicians.

As advocated by Mr. Yasuki Aoki, the government has to change the term "average GDP", which expresses concepts correctly, for "latent GDP of average concept".