Open AccessEXPLAINING THE GREAT MODERATION: IT IS NOT THE SHOCKS
Author(s) -
Gian Domenico,
Lenza Michele,
Reichlin Lucrezia
Publication year - 2008
Publication title -
journal of the european economic association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 7.792
H-Index - 93
eISSN - 1542-4774
pISSN - 1542-4766
DOI - 10.1162/jeea.2008.6.2-3.621
Subject(s) - great moderation , economics , volatility (finance) , monetary economics , moderation , macroeconomics , econometrics , psychology , social psychology
This paper shows that the explanation of the decline in the volatility of GDP growth since the mid 1980s is not the decline in the volatility of exogenous shocks but rather a change in their propagation mechanism. (JEL: E32, E37, C32, C53)
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