Enders, Walter; Ma, Jun - In: Journal of Economic Dynamics and Control 35 (2011) 1, pp. 67-79
Recent work finds evidence that the volatility of the U.S. economy fell dramatically around the first quarter of 1984. We trace the timing of this so-called "Great Moderation" across many subsectors of the economy in order to better understand its root cause. We find that the interest rate...