Discussion paper

DP6600 Explaining The Great Moderation: It Is Not The Shocks

This paper shows that the explanation of the decline in the volatility of GDP growth since the mid-eighties is not the decline in the volatility of exogenous shocks but rather a change in their propagation mechanism.

£6.00
Citation

Reichlin, L, D Giannone and M Lenza (2007), ‘DP6600 Explaining The Great Moderation: It Is Not The Shocks‘, CEPR Discussion Paper No. 6600. CEPR Press, Paris & London. https://cepr.org/publications/dp6600