Will stability last?

There is no consensus about the causes of the reduction in business cycle volatility seen in many major economies over the last decade. Using stylised models of the economies of the US, Euro area, UK and Japan, we argue that economic stability has been fostered by improved monetary policy and by associated changes in the behaviour of inflation, which has itself led to a reduction in the volatility of economic shocks. Assuming an absence of cataclysmic events, our projections suggest that most major economies should continue to enjoy an unusual degree of stability.

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Year of publication:	2004
Authors:	Martin, William ; Rowthorn, Robert
Publisher:	Munich : Center for Economic Studies and Ifo Institute (CESifo)
Subject:	Konjunktur \| Wirtschaftswachstum \| Volatilität \| Geldpolitik \| Inflationserwartung \| Vereinigte Staaten \| Grossbritannien \| EU-Staaten \| Japan \| growth volatility \| inflation \| stabilisation \| business cycles \| US \| UK \| Euro area

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Series:	CESifo Working Paper ; 1324
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	477395384 [GVK] hdl:10419/18689 [Handle]
Classification:	E3 - Prices, Business Fluctuations, and Cycles ; F01 - Global Outlook ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	EconStor