1980s - Economic boom and bust - The British economy in the 1980s. s - The Lawson boom. Rapid growth, inflation and recession. 1990s – Recession and great stability – Recovering from recession and exiting the ERM. The economy of the States - from stability to financial crisis. 1992-2007 - The Great Moderation - a period of. One of the central objectives of macroeconomic policy is the stabilization of fluctuations in the business cycle. Stabilization policies, including monetary and fiscal policy, are implemented based on the paradigm that stable economic conditions are preferable to recurring cycles of boom and bust. This thesis contributes to our understanding of effects and transmission.