December 2020

The World Bank (www.worldbank.org) hasdata on money growth rates for different countries. These data are listed under “Money and Quasi-Money” growth, which is roughly the same as M2 in the United States. Choose 10 countries to analyze. a. Which countries have the most rapid rates of money growth? The slowest? b. Compare the data on […]

Use data from the World Bank (www.worldbank.org) to do the following: a. Find the correlation coefficient for M2 growth and consumer price growth for each country in the group of 10 high-income countries. b. Find the correlation coefficient for each country in the group of 10 low-income countries. c. Now find the correlation coefficient for

Using data from the St. Louis Federal Reserve (FRED) (http://research.stlouisfed.org/fred2/), analyze the money supply. a. Find the values from FRED for the M1 Money Stock (M1), the Currency Component of M1 (CURRENCY), and Total Checkable Deposits (TCD), from 1950 to the present. b. Plot the growth rate of M1, the currency component, and total checkable

Using data from the St. Louis Federal Reserve (FRED) (http://research.stlouisfed.org/fred2/), analyze the relationship between the money supply and inflation. a. Find the values for M1 (M1SL) and the personal consumption expenditure price index (PCEPI) from 1959 to the present. b. Calculate the year-over-year growth rate for each variable. c. In how many recessions does the

Using data from the St. Louis Federal Reserve (FRED) (http://research.stlouisfed.org/fred2/), analyze the relationship between the money supply and inflation. a. Find the values for M1 (M1SL) and the personal consumption expenditure price index (PCEPI) from 1959 to the present. b. Calculate the year-over-year growth rate for each variable. c. In how many recessions does the

Using data from the St. Louis Federal Reserve(FRED) (http://research.stlouisfed.org/fred2/), analyze interest rates and inflation. a. Find the most recent values and values from the same month 5 years earlier from FRED for the the 10-Year Treasury Constant Maturity Rate (GS10), and the 10-Year Treasury Inflation-Indexed Security, Constant Maturity (FII10). b. Using the data found above,

Demographic studies show that the Hispanic populationof the United States is increasing. Traditionally, Hispanics have had higher-than-average rates of unemployment. However, it is also true that Hispanic women tend to have lower labor force participation rates (in other words, are less likely to enter the labor force) than women of other ethnic groups. How would

Using data from the St. Louis Federal Reserve(http://research.stlouisfed.org/fred2/), analyze the relationship between the output gap and cyclical unemployment. a. Download quarterly data on nominal GDP (GDP), nominal potential GDP (NGDPPOT), the unemployment rate (UNRATE), and the natural rate of unemployment (NROU) for the most recent quarter. Use the data to calculate the output gap. b.

Briefly explain whether you agree with the following statement: “Central banks control only short-term interest rates, but long-term interest rates are most important for economic activity. Therefore, monetary policy is not important in determining output.”

The following are data on the Treasury yield curve for July 17, 2012: Given these data, why would an investor have been willing to buy a one-year Treasury bill with an interest rate of only 0.18% when the investor could have bought a 30-year Treasury bond with an interest rate of 2.59%?