The policies that seemed to be effective during the Great Moderation seemed to be inadequate to fight the Great Recession.

Question

Quizplus · Accepted Answer

The policies that helped maintain the stability and growth during the Great Moderation period (1980s-2000s) were not sufficient to cope with the severe economic downturn of the Great Recession (2008-2009). This was evident in the widespread financial crisis, high unemployment rates, and sluggish economic recovery. Therefore, policymakers had to adopt new and unconventional measures to address the challenges of the Great Recession.

The Policies That Seemed to Be Effective During the Great