Back in 2004 Federal Reserve governor named Ben Bernanke borrowed a phrase from an academic research paper and coined the phrase “the great moderation.”
“These days, though, the great moderation isn’t looking quite so great — or so moderate.”
“Until a few months ago, it was accepted wisdom that the American economy functioned far more smoothly than in the past. Economic expansions lasted longer, and recessions were both shorter and milder. Inflation had been tamed. The spreading of financial risk, across institutions and around the world, had reduced the odds of a crisis.”
[read whole story]