Nason James M.; W, Smith Gregor - In: The B.E. Journal of Macroeconomics 8 (2008) 1, pp. 1-33
The Great Moderation refers to the fall in US output growth volatility in the mid-1980s. At the same time, the US experienced a moderation in inflation and lower average inflation. Asset pricing theory predicts that moderations -- real or nominal -- influence interest rates. Using annual data...