In economics, the Great Moderation refers to a reduction in the volatility of business cycle fluctuations starting in the mid-1980s, believed to have been caused by institutional and structural changes in developed nations in the later part of the twentieth century. Sometime during the mid-1980s major economic variables such as real GDP growth, industrial production, monthly payroll employment and the unemployment rate began to decline in volatility.
Read more about Great Moderation: Origins of The Term, Causes, Effects, Possible End
Famous quotes containing the word moderation:
“The honest Man has, I know, that modest Desire of Gain which is peculiar to those who understand better Things than Riches; and I dare say he would be contented with much less than what is called Wealth in that Quarter of the Town which he inhabits, and will oblige all his Customers with Demands agreeable to the Moderation of his Desires.”
—Richard Steele (1672–1729)