CAUSES OF THE GREAT MODERATION RE-STUDIED
The purpose of this paper is to perform a new study to add support for one of the three explanations of the Great Moderation; the explanation based on a change in monetary policy. The study focuses on the U.S., the U.K., and Australia during the period 1970 Q1-2013 Q3. The study is performed by exploring whether the Moderation (persistent decline in output volatility) was caused by volatility beha