| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059856 | Economics Letters | 2012 | 4 Pages |
Abstract
⺠We decompose a 219-year sample of US real output into permanent and transitory shocks. ⺠We find reductions in the volatility of output growth and inflation in the mid-1980s. ⺠We find more substantial reductions during what we term the Postwar Moderation. ⺠During this period output growth volatility fell by 60%, mainly driven by aggregate supply shocks. ⺠Inflation volatility fell by 76%. Most of this reduction is due to aggregate demand shocks.
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Economics and Econometrics
Authors
John Keating, Victor Valcarcel,