The Great Moderation refers to the period between the mid-1980s and the outbreak of global financial crisis, when the world experienced noticeably low economic volatility. The rationale behind this Great Moderation is approached academically in various ways - with the stable operation of advanced countries monetary and fiscal policies being one of them. In other words, it can be said that advanced nations sound fiscal policy with greater fiscal discipline and effective monetary policy through strengthened central bank independ-ence and introduction of inflation targeting eventually contributed to the reduction of global economic fluctuation in the period.