Download this Paper Open PDF in Browser

Has the Fed Improved U.S. Economic Performance?

26 Pages Posted: 19 Nov 2013 Last revised: 26 Aug 2015

Thomas L. Hogan

Troy University

Date Written: March 1, 2015


This paper finds that U.S. economic performance has not generally improved under the Federal Reserve, with the possible exception of the Great Moderation. We analyze the Fed and pre-Fed periods in terms of the rates and volatilities of inflation and real GDP growth. Comparing the pre-Fed periods to the post-World War II period and the Great Moderation, we find that real GDP growth has been lower under the Fed, while inflation has been higher. The volatilities of inflation and GDP growth have both declined under the Fed, but the reductions occurred mostly during the Great Moderation.

Keywords: Federal Reserve, Inflation, GDP, Volatility, Gold standard, Great moderation

JEL Classification: E31, E32, E42, E58

Suggested Citation

Hogan, Thomas L., Has the Fed Improved U.S. Economic Performance? (March 1, 2015). Journal of Macroeconomics, 43 (2015): 257-266. Available at SSRN: or

Thomas Hogan (Contact Author)

Troy University ( email )

Troy, AL
United States

Paper statistics

Abstract Views