The Great Moderation, Dead or Alive

The Great Moderation is a significant decline in the volatility of fluctuations in most macroeconomic variables that the United States and other developed and developing economies have experienced at least since the mid 1980s. This case describes the basic facts, presents contending explanations and explores the consequences of the Great Moderation for the likely amplitude of future business cycles.
Collection: HBSP (USA)
Ref: HBS-709023-E
Format: PDF
Number of pages: 16
Publication Date: Jan 6, 2009
Language: English
Review date: Jan 11, 2011

Description

The Great Moderation is a significant decline in the volatility of fluctuations in most macroeconomic variables that the United States and other developed and developing economies have experienced at least since the mid 1980s. This case describes the basic facts, presents contending explanations and explores the consequences of the Great Moderation for the likely amplitude of future business cycles.
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Year: 1930
Geographic Setting: United States

The Great Moderation, Dead or Alive

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"The Great Moderation, Dead or Alive"