Interest rate stability is a common goal of central banks. When has the Federal Reserve been relatively

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Interest rate stability is a common goal of central banks. When has the Federal Reserve been relatively successful at keeping interest rates stable? Compare quarterly changes since 1965 of the federal funds rate (FRED code: FEDFUNDS) with the level of inflation based on the percentage change from year-ago levels of the consumer price index (FRED code: CPIAUCSL). Are stable interest rates associated with high or low inflation? Why?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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