DP6600 | Explaining The Great Moderation: It Is Not The Shocks

Publication Date

14/12/2007

JEL Code(s)

Keyword(s)

Programme Area(s)

Abstract

This paper shows that the explanation of the decline in the volatility of GDP growth since the mid-eighties is not the decline in the volatility of exogenous shocks but rather a change in their propagation mechanism.