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Exact(4)
The significant drop in the volatility of output and inflation since the mid-1980s — a period known as the Great Moderation — helped lull "macroeconomists and policy makers alike in the belief that we knew how to conduct macroeconomic policy," the fund's chief economist, Olivier Blanchard, wrote in one of the papers.
Second, the high variance component, whatever its specification, tends to absorb most of the volatility of output.
Moreover, it is conducive to a drop in the volatility of output, a parallel increase in the volatility of wages and to changes in unconditional correlations consistent with what documented in the U.S. between the pre- and post-1984 periods.
A non-exhaustive overview of papers related to ours are, among others, Zanetti (2011), who finds in a related DSGE model that labor market institutions significantly affect the volatility of output, employment and job flows (negatively for employment protection, positively for unemployment benefits).
Similar(56)
As it turns out, real output has grown slightly faster under the Fed than under the gold standard, and the volatility of real output growth has been somewhat lower.
The overall effect is to increase the volatility of domestic output, rather than promote macroeconomic stability, one of the intentions behind inflation targeting.As has been frequently pointed out in the blogosphere, if the bank targeted nominal GDP (NGDP) rather than inflation, there would be no such problem.
The increased volatility of milk output prices and dairy farm incomes has, however, received the most attention (McDonald et al. 2014; Loughrey et al. 2015).
However, because of the randomness of RES and the volatility of power output, energy storage technology is needed to chip peak off and fill valley up, promoting RES utilization and economic performance.
However, due to the volatility of the output of renewable DG, in order to maintain the LOEE level of the system, more DGs are needed to compensate for the reduced superior substation capacity.
To consider the impacts of the volatility of power outputs of the distributed generators on the system reliability, multistate models are developed in [11], [12] [13].
The time varying UGF can reflect the sequential volatility of wind power output.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com