An additional explanation is provided for the decline in output variability that began in the mid-1980s. Using state, regional and aggregate data for the US, we examine the shifting influence from manufacturing to services on this variability. At all levels, we find support for this output...

Employing US state data, a positive correlation is found between inflation and growth during the 1980s, accompanied by a downward trend in inflation. During the 1960s and 1970s, a negative correlation was accompanied by an upward trend in inflation.