Using data from the St. Louis Federal Reserve
(FRED) (http://research.stlouisfed.org/
fred2/), analyze what happened to the money
multiplier.
a. Find data from FRED for Excess Reserves
of Depository Institutions (EXCRESNS),
the monetary base (AMBSL), M1 (M1SL)
and M2 (M2SL).
b. Calculate the M1 multiplier and the M2
multiplier. Graph the value of these multipliers
since 1959.
c. Graph excess reserves since 1959.
d. Why did the M1 and M2 multipliers
decrease dramatically during the 2007–2009
recession?