Using the data from question 8 for the NBER Business Cycle Reference Dates since 1960 and the

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Using the data from question 8 for the NBER Business Cycle Reference Dates since 1960 and the effective federal funds rate, plot the monthly interest rate data and note the behavior of the federal funds rate just before each recession began. Did interest rates rise or fall before peaks in the business cycle? Do your fi ndings suggest that monetary policy causes recessions?

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Money Banking And Financial Markets

ISBN: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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