Indeed it could be argued that the “great moderation” – an undoubted success on the inflation/output metric – fostered, or at least allowed, a leverage build-up that was ultimately inimical to financial stability and hence macroeconomic stability.
The success in lessening volatility in economic activity, inflation and interest rates over quite a lengthy period made it feasible for firms and individuals to think that a degree of increased leverage was safe. 7 But  4  IMF (2012), Annual Report, Appendix II, pp 14–16, available at <http://www.imf.org/external/pubs/ ft/ar/2012/eng/pdf/a2.pdf>.