The "Great Moderation" and the US External Imbalance
---- Acknowledgements ----
This paper has been prepared for the international conference on "Financial Markets and the Real Economy in a Low Interest Rate Environment" held at the Institute for Monetary and Economic Studies of the Bank of Japan on June 1-2, 2006. We thank Hans Genberg and Aviram Levy for their excellent discussions and conference participants for their valuable comments. All errors remain our own. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.