Morley, James; Singh, Aarti - School of Economics, UNSW Business School - 2015
Why did the volatility of U.S. real GDP decline by more than the volatility of final sales with the Great Moderation in … smoothing. We investigate the role of inventories in the Great Moderation by estimating an unobserved components model that … prognosis for a continuation of the Great Moderation despite the dramatic movements in output during the recent economic crisis. …