The Great Moderation

The Great Moderation

The Great Moderation is a recent phase marked by an economic phenomenon. It refers to the time between 1980 and early 2007, when changes in economic activity, consumption, and inflation experienced a dramatic decrease in volatility [Federal Reserve Board, "The Great Moderation" [http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2004/20040220/default.htm] ] [National Bureau for Economic Research [http://www.nber.org/papers/W9127.pdf] ] .

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