This book deals with methods for calculating the overall economic production potential used by various institutions in the Eurozone. The topic is currently of particular interest to German economic policy, as production potential is a significant variable in economic policy decision-making. Misestimates—especially underestimations—of production potential can lead to incorrect economic conclusions and, subsequently, to misguided economic policies, which can have fatal consequences for the German economy, which is slowly recovering from a long stagnation. For these reasons, this work critically examines the theoretical assumptions, the functioning, and the data requirements of the estimation methods, and evaluates the currently common potential calculation methods.