A decomposition of the increased stability of GDP growth

McConnell, Margaret M.; Mosser, Patricia C.; Perez-Quiros, Gabriel

Journal Article

A decomposition of the increased stability of GDP growth

Abstract: Since 1984, the U.S. economy has grown at a remarkably steady pace. An analysis of this increased stability shows that every major component of GDP has exhibited smoother growth. However, two components--inventory investment and consumer spending--are responsible for the bulk of the decline in overall volatility.

Keywords: Inventories; Capital investments; Consumption (Economics); Gross domestic product;