The Great Moderation: What Caused It and Is It Over?

@inproceedings{ComTheGM,
  title={The Great Moderation: What Caused It and Is It Over?},
  author={Www Macroadvisers Com}
}
  • Www Macroadvisers Com
our resident time series econometrician, James Morley, tries to rehabilitate the " Great Moderation. " His findings are both surprising and encouraging: • Contrary to conventional wisdom, the Great Moderation was not a myth. There has been a very real, broad-based decline in U.S. macroeconomic volatility since the mid-1980s. • The reduction in volatility does not appear to be primarily the result of better policy or changes in the structural response of the economy to shocks. • Instead, the… CONTINUE READING