Citation

Discussion Paper Details

Please find the details for DP6632 in an easy to copy and paste format below:

Full Details | Bibliographic Reference

Full Details

Title: On the Sources of the Great Moderation

Author(s): Jordi Gal� and Luca Gambetti

Publication Date: January 2008

Keyword(s): Great Moderation, Labour hoarding, Monetary policy rules, Structural VARs and Technology Shocks

Programme Area(s): International Macroeconomics

Abstract: The remarkable decline in macroeconomic volatility experienced by the U.S. economy since the mid-80s (the so-called Great Moderation) has been accompanied by large changes in the patterns of comovements among output, hours and labour productivity. Those changes are reflected in both conditional and unconditional second moments as well as in the impulse responses to identified shocks. That evidence points to structural change, as opposed to just good luck, as an explanation for the Great Moderation. We use a simple macro model to suggest some of the immediate sources which are likely to be behind the observed changes.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6632

Bibliographic Reference

Gal�, J and Gambetti, L. 2008. 'On the Sources of the Great Moderation'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6632