1 IntroductionThe period beginning in the mid 1980s and ending in the late 2000s has been characterized by a fall in output volatility across industrialized nations, a phenomenon which has been frequently referred to as the great moderation. While this period of relative tranquility and economic prosperity was followed by the present crisis, it is nevertheless a matter of debate whether the phenomenon of great moderation can be explained by economic factors or pure luck. Several factors have
