Gauging Capacity Pressures Within Businesses

7 Pages Posted: 9 Apr 2007

See all articles by Colin Ellis

Colin Ellis

Hult International Business School (London)


This article discusses the measurement of capacity pressures within businesses — a key influence on the outlook for inflation. The degree of pressure on capacity relative to normal is likely to affect businesses' costs and prices. A variety of different methods are presented, each with their own advantages and drawbacks. Ultimately, no measure of capacity pressure is perfect, and the policymaker's judgement is crucial.

Suggested Citation

Ellis, Colin, Gauging Capacity Pressures Within Businesses. Bank of England Quarterly Bulletin 2007 Q1, Available at SSRN:

Colin Ellis (Contact Author)

Hult International Business School (London) ( email )

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