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Was The Great Moderation Simply On Vacation?

Monday, October 10, 2016 5:53
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(Before It's News)

from the St Louis Fed

– this post authored by Christopher J. Waller

From around 1984 to the mid-2000s, U.S. macroeconomic volatility dropped to unusually low levels. Economists dubbed the period the “Great Moderation.” With the arrival of the Great Recession, many declared the Great Moderation over. However, data indicate that the increased volatility in 2007-09 may have been a temporary blip instead of a reversion back to the days of high volatility.

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