The Two Greatest. Great Recession vs. Great Moderation

39 Pages Posted: 18 Sep 2014

Multiple version iconThere are 2 versions of this paper

Date Written: September 17, 2014


Many have argued that the Great Recession of 2008 marked the end of the Great Moderation of the eighties and nineties. Through painstaking empirical analysis of the data, this paper shows this is not the case. Output volatility remains subdued despite the turmoil created by the Great Recession. This finding has important implications for policymaking since lower output volatility (the hallmark of the Great Moderation) is associated with weaker recoveries.

Keywords: business cycle, volatility, recoveries

JEL Classification: C22, E32

Suggested Citation

Gadea Rivas, Maria Dolores and Gómez-Loscos, Ana and Perez-Quiros, Gabriel, The Two Greatest. Great Recession vs. Great Moderation (September 17, 2014). Banco de Espana Working Paper No. 1423, Available at SSRN: or

Maria Dolores Gadea Rivas (Contact Author)

University of Zaragoza ( email )

Gran Via 2
Zaragoza, 50005

Ana Gómez-Loscos

Banco de España ( email )

Alcala 50
Madrid 28014

Gabriel Perez-Quiros

Banco de España ( email )

Madrid 28014

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics