Great Moderation

E8742

economic phenomenon macroeconomic period

The Great Moderation was a period from the mid-1980s to the mid-2000s characterized by unusually stable economic growth and low, steady inflation in many advanced economies, especially the United States.

Statements (47)

Predicate	Object
instanceOf	economic phenomenon → macroeconomic period →
associatedWith	decline in consumption volatility → decline in employment volatility → decline in inflation volatility → decline in investment volatility → decline in output volatility →
characterizedBy	low inflation → reduced macroeconomic volatility → stable economic growth → steady inflation →
contrastedWith	Great Inflation → Great Recession →
debatedBy	economists →
documentedBy	empirical time-series studies →
especiallyObservedIn	United States →
hasAlternativeName	period of reduced macroeconomic volatility →
hasEndTime	mid-2000s →
hasGeographicFocus	United States →
hasKeyFeature	more predictable inflation → reduced frequency of severe recessions → smaller business cycle fluctuations →
hasMeasurement	lower variance of inflation → lower variance of real GDP growth →
hasProposedCause	financial innovation → globalization → good luck hypothesis → improved monetary policy → inventory management improvements → structural economic changes →
hasStartTime	mid-1980s →
linkedTo	Taylor rule–type monetary policy → central bank independence → inflation targeting policies →
namedBy	James Stock → Mark Watson →
observedIn	Australia → Canada → Euro area → United Kingdom →
occursIn	advanced economies →
precedes	2007–2008 financial crisis → Great Recession →
questionedAfter	global financial crisis of 2007–2009 →
studiedInField	macroeconomics → monetary economics →
timePeriodOf	post-World War II U.S. economy →

Referenced by (4)

Subject (surface form when different)	Predicate
Great Inflation → Volcker shock →	followedBy
James Stock →	coinedTerm
James Stock →	notableConcept