Bernanke attributed the Great Moderation primarily to improved monetary policy

Evidence

One of the most striking features of the economic landscape over the last twenty years or so has been a substantial decline in macro­economic volatility … Three types of explanations have been suggested … structural change, macroeconomic policies, and good luck … My view is that improvements in monetary policy, though certainly not the only factor, have probably been an important source of the Great Moderation … the policy explanation for the Great Moderation deserves more credit than it has received in the literature. — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 503

Categorization

• CANDY: A quotable instance of pre-crisis hubris — Bernanke crediting his own discipline for stability right before the crash.
• XREF: connects to: The Great Moderation consensus collapsed in 2008 exactly as Austrian theory predicted — Mark Blyth, Austerity: The History of a Dangerous…, 387; Belief in the Great Moderation blinded the Fed to signs of crisis — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 504; Bernanke’s Fed doctrine is the Friedmanite branch of neoliberal monetary catechism. — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 521

Broader Connections

• Belief in the Great Moderation blinded the Fed to signs of crisis #complicates (0.85) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 504
• Bernanke’s Fed doctrine is the Friedmanite branch of neoliberal monetary catechism. #expands (0.85) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 521