to say, how much that can be produced in, for example, one hour of work or use of the machinery. it is important to emphasise that potential output is not an estimate of a ceiling for production. it is therefore not a measure of the level of output that would apply if the entire labour force were employed and all physical capital was used to the maximum. by potential output and potential growth we mean instead the output and growth that is possible without serious imbalances arising in the economy ; the level of output at which supply and demand correspond and actual and expected inflation are in line with the central bank ’ s inflation target ( assuming that there is one ). the potential output level is not constant over time ; it usually shows a growth trend, which is illustrated in figure 1. this is mainly because technological developments mean that higher output can be achieved with the same amount of factors of production. another reason could be long - term changes in the factors of production. the change in potential output from year to year is equal to the potential growth of the economy, which thus is the growth rate that is sustainable in the long term. figure 1 shows the potential output level according to a simple statistical method where the trend, and thereby also the potential growth rate, is allowed to vary over time. the difference between actual and potential output is known as the output gap, and this reflects the cyclical variations in the economy. a negative output gap, that is to say, when actual output is lower than potential output, is usually connected with a recession. the demand pressure for goods, services and the factors of production is then small and there are ample unutilised resources in the economy. price and wage increases are small and inflation is usually below the central bank ’ s target level. when there is a positive output gap, the circumstances are normally the reverse. then, actual output is higher than potential output, resources are strained, unemployment is lower than normal and inflation is higher than the target level. when the economy is in balance, the output gap is closed, that is to say, equal to zero. in practice, both actual and potential output is affected by various shocks which mean that the output gap is rarely zero. if there is a situation with a negative output to begin with, the economy can grow more rapidly than its potential output rate for a short period. the fact is that this is necessary in such a situation in order to close the gap and bring the economy back into balance. however

most powerful roman after julius caesar and his three famous words “ veni, vidi, vici ” is president draghi with his famous three words “ whatever it takes ” ( to save the euro ) announced in july 2012 in a speech in london, thereafter quantified with the announcement of the omt programme in september of the same year, which resulted in a huge drop in italian and spanish yields as you can see from the following figure ( page 18 ). and you know how much money the ecb has spent for this?? 0€!! 4. 2 return to international capital markets there are two different issues here : one is a tentative return which may take place within this year, for instance, the recycling of the three - year bond issue of september 2014 or the reopening of the existing five - year bond issue which matures in 2019. for this, given the low interest rate environment and that greece ’ s future is now firmly secured within the eurozone and there is so much liquidity out there and the recent upgrade in greece ’ s ratings, this is something feasible, ladies and gentlemen. the government doesn ’ t need qe for this, probably, or the medium - term 3 / 4 bis central bankers'speeches debt - relief measures. this is useful, as you understand. and the current financial outlook in our sovereign bond market is favourable – it compares to the outlook of 2014, when greece for the first time returned tentatively to international capital markets ( see appendix ). however, for a permanent return to the markets which would signal the end of an era for greece, namely the end of adjustment programmes of this sort, and no need for a 4th memorandum, which has various aspects and requires a number of small, steady positive steps, which might include a successful and timely completion of the third review, the full implementation of reforms and the privatisation agenda but, last but not least, as described in the last paragraph of the eurogroup statement ( 15 june ), which talks about the building up of cash buffers, or as it is also known a precautionary credit line, to facilitate market access during the first year after the end of the 3rd programme in august next year, to support investors ’ confidence. this amount of money is there, will be given to greece as part of the third and final review of the current programme, and of course, quite plausibly, it will come with some sort of conditionality ; not perhaps