Definition of plog

The term plog is sometimes used to describe a presidential blog, but in March 2013 it was being used to describe the state of the UK economy in the recession-hit years that followed the 2008 financial crisis. Plog in this economic usage is an an acronym that stands for persistent large output gap.

 

plog in the news

In March 2013, Chris Giles the FT's economics editor, used the term to describe the likely impotence of the incoming governor of the Bank of England, Mark Carney. He pointed out that the UK's economy was depressed and had lots of capacity standing idle (a large output gap) and it had done for for years (persistent). In this plog scenario, actual growth stays below the economy's potential output as spare resources do not force companies to lower prices or workers to accept lower wages. A plog lies at the centre of the Office of Budget Responsibility's forecast, wrote Mr Giles.

FT Articles & Analysis

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