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.
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Famous quotes containing the word moderation:
“After mature deliberation of counsel, the good Queen to establish a rule and imitable example unto all posterity, for the moderation and required modesty in a lawful marriage, ordained the number of six times a day as a lawful, necessary and competent limit.”
—Michel de Montaigne (1533–1592)