Question
2. In this question you look at the relationship between movements in the inflation rate and the interest rate. (a) Calculate the inflation rate as
2. In this question you look at the relationship between movements in the inflation rate and the interest rate.
(a) Calculate the inflation rate as the growth rate in your CPI or GDP Deflator series using: t = Pt Pt1/Pt1 where t is the inflation rate in year t and P refers to your CPI or GDP Deflator. Note, you will not have an observation for inflation for the first year of your sample
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Financial Accounting Making The Connection
Authors: J David Spiceland, Wayne Thomas, Don Herrmann
1st Edition
0077862260, 9780077862268
