The Great Moderation, Dead or Alive?

Case Solution

Diego Comin
Harvard Business School ()

The Great Moderation is a significant decrease in the volatility of the variability of most macroeconomic variables that the United States and other developed and developing countries have seen since at least the mid-1980s. This case describes the basic facts, presents conflicting explanations and examines the consequences of the Great Moderation on the likely amplitude of future business cycles.

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