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Stephen King: Good luck, not good providence, was at the core of happier times

22nd June 2009

We stand at a momentous point in macroeconomic policy thinking. A couple of years ago, it was possible to argue that monetary arrangements were good enough to avoid, or at least temper, nasty economic developments. We understood enough, apparently, to avoid the mistakes of the 1970s. We were living through the Great Moderation, the Great Stability or, as Mervyn King, the Governor of the Bank of England, once put it, the NICE (non-inflationary continuous expansion) decade.

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