Can the Great Moderation Explain the Lower Output Volatility across the World?

17 Pages Posted: 27 Jun 2010 Last revised: 7 Apr 2011

See all articles by Bruno Coric

Bruno Coric

University of Split Faculty of Economics

Vinko Muštra

University of Split - Faculty of Economics

Date Written: April 5, 2011

Abstract

In this paper we assess the hypothesis that the unprecedented stability of the United States economy, in the decades preceding the outbreak of the financial crisis in August 2007, caused a relatively low output volatility in other national economies. The results of the time series analysis of 97 developed and developing countries suggest that low output volatility in the United States is not likely to be the main source of low output volatility across the world in this period.

Keywords: GDP growth volatility, structural changes, the Great Moderation

JEL Classification: E32, F41

Suggested Citation

Coric, Bruno and Muštra, Vinko, Can the Great Moderation Explain the Lower Output Volatility across the World? (April 5, 2011). Available at SSRN: https://ssrn.com/abstract=1630242 or http://dx.doi.org/10.2139/ssrn.1630242

Bruno Coric

University of Split Faculty of Economics ( email )

Split, HR-21000
Croatia

Vinko Muštra (Contact Author)

University of Split - Faculty of Economics ( email )

Matice hrvatske 31
Split, 21000
Croatia

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