individuals and households. -- Great Moderation ; inventories ; monetary policy ; volatility …We review evidence on the Great Moderation together with evidence about volatility trends at the micro level to develop … a potential explanation for the decline in aggregate volatility since the 1980s and its consequences. The key elements …

We review evidence on the Great Moderation together with evidence about volatility trends at the micro level to develop … a potential explanation for the decline in aggregate volatility since the 1980s and its consequences. The key elements … are declines in firm-level volatility and aggregate volatility - most dramatically in the durable goods sector - but with …

inflation and inflation volatility. Using annual data from 1970 to 2011 for a large panel of 180 developed and developing … economies, the results show that, as expected, both measures are positively correlated with output volatility. When the two … empirical findings show that the effect of inflation volatility is positive, while the effect of trend inflation is negative …

materials, for both production as well as for inventories. The more detailed treatment of inventory holdings offers new insights … and they explain the volatility of many variables. We reject the hypothesis of better inventory management and improved …

"We review evidence on the Great Moderation in conjunction with evidence about volatility trends at the micro level. We … combine the two types of evidence to develop a tentative story for important components of the aggregate volatility decline … and its consequences. The key ingredients are declines in firm-level volatility and aggregate volatility -- most …