The Great Moderation's long expansions and short recessions were the result of good monetary policy and a better understanding of its impact (including the importance of expectations), evidenced by the pattern that bad policy in the 1970s produced bad results, good policy in the 80s and 90s produced good results, and getting off that good policy again produced the recent crisis.
causalpending
Speaker
John TaylorEvidence Quote
“the Great Moderation was did a good monetary policy and a better understanding of the impact of monetary policy after all once we got off of that policy things went to hell in a handbasket... in the 70s we were off of that we were following a bad policy things were terrible in the 80s and 90s basically good good policy good results and now bad policy bad results”
Created: 6/15/2026, 9:20:12 AM
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