Wednesday, September 15, 2010

What Great Moderation?

CPI-U percent change YoY
I see no moderation with respect to price stability.
According to Wiki:
Richard H. Clarida at PIMCO considers the period of the Great Moderation to be roughly between 1987–2007, and it is characterised by "predictable policy, low inflation, and modest business cycles." [5]

I don't think so.  Money has become more unstable during that period.

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