Assignment detailsIn Lecture 2, we discussed the reduction in volatility of output growth and inflation after the mid 1980s. This is a period termed the Great Moderation. The causes of the Great Moderation and whether the Great Moderation has ended is a hotly debated topic in macroeconomics. For this Macro Cafe Discussion, please read through the following sources regarding the Great Moderation:
1. James Morley’s article on the Great Moderation (the article can be found in the Week 1\/Wednesday folder).
This short article gives a detailed discussion of the Great Moderation, with international comparisons and evidence supporting or disputing each of the hypothesis on the causes of the Great Moderation. The article was written in 2009. I recommend reading through the article noting when the moderation began, how economists detected it, and evidence for and against each hypothesis.
2. Craig Hakkio’s (Kansas City Fed) short article about the Great Moderation on the Federal Reserve History\u00a0website.
This was written in 2013, a slight update compared with Morley’s paper.
3. Chris Waller’s (St. Louis Fed) even shorter article on whether the Moderation is over on the St. Louis Fed’s\u00a0website.
Written in 2016, a very quick overview with some updated data. <\/p>\n
Initial PostIn your initial post, state which of the three hypothesis you find most convincing in explaining the Great Moderation. Detail the evidence for and against the hypothesis using your own words. Also, comment on whether you believe the Great Moderation is over, taking into consideration recent events and how that fits in with the three hypotheses posed. <\/p>\n","protected":false},"excerpt":{"rendered":"
Assignment detailsIn Lecture 2, we discussed the reduction in volatility of output growth and inflation after the mid 1980s. This is a period termed the Great Moderation. The causes of the Great Moderation and whether the Great Moderation has ended is a hotly debated topic in macroeconomics. For this Macro Cafe Discussion, please read through […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[22],"class_list":["post-49881","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-economics"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/49881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=49881"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/49881\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=49881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=49881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=49881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}