Can the Great Moderation Explain the Lower Output Volatility across the World?

In this paper we assess the hypothesis that the unprecedented stability of the United States economy, in the decades preceding the outbreak of the financial crisis in August 2007, caused a relatively low output volatility in other national economies. The results of the time series analysis of 97 developed and developing countries suggest that low output volatility in the United States is not likely to be the main source of low output volatility across the world in this period