The Fed is the single reason for the reduction in volatility between 1985 and 2007.

Question

Quizplus · Accepted Answer

The reduction in volatility between 1985 and 2007, often referred to as the Great Moderation, cannot be attributed to the Federal Reserve alone. Several factors, including technological advancements, better inventory management, financial innovation, globalization, and improved economic policies, contributed to this period of reduced volatility.

The Fed Is the Single Reason for the Reduction in Volatility