Morley, James; Singh, Aarti - School of Economics, Faculty of Arts and Social Sciences - 2009
Why did the volatility of U.S. real GDP decline by more than the volatility of final sales with the Great Moderation in … production smoothing. We investigate the role of inventories in the Great Moderation by estimating an unobserved components model … findings provide an optimistic prognosis for the continuation of the Great Moderation despite the dramatic movements in output …