Time To Revisit 'The Great Moderation'? : Planet Money In 2004, the current chairman of the U.S. Federal Reserve, Ben Bernanke, gave a now famous speech suggesting that over the last few decades, many regulators around the world have become more adept at manipulating key economic levers such as an eco...
NPR logo Time To Revisit 'The Great Moderation'?

Time To Revisit 'The Great Moderation'?

In 2004, the current chairman of the U.S. Federal Reserve, Ben Bernanke, gave a now famous speech suggesting that over the last few decades, many regulators around the world have become more adept at manipulating key economic levers such as an economy's supply of money. He said the result, which he called "The Great Moderation," has been smoother business cycles and recessions that are smaller and less frequent than in the past.

Here's a link to the speech, which starts off: "One of the most striking features of the economic landscape over the past twenty years or so has been a substantial decline in macroeconomic volatility."

Take a read and see if you think it's time for Bernanke to update his talk.