Thank you, Mr. Herbener. I did some research and found this interview with George Selgin on the Federal Reserve (http://www.econtalk.org/archives/2010/12/selgin_on_the_f.html)
He mentions the Great Moderation around the 45:00 mark. He uses your argument as a probable cause, along with others.
There is also this article by Selgin, and Lawrence White which also mentions the “Great Moderation”. http://www.cato.org/pubs/researchnotes/WorkingPaper-2.pdf
