2.2  Impact on the volatility of output  A common thread running through most of the finance and growth literature is the focus on output growth. Policymakers, however, also take a great interest in the volatility of output growth.
One of the most striking features of the economic landscape over the past twenty to thirty years has been the well-documented decline in the volatility of output growth (and inflation), dubbed the “great moderation”. Volatility of GDP growth roughly halved in all G-7 countries – even though the specific pattern and timing often differed from country to country.