Question
4. A measure of real interest rates can be approximated by the Treasury Inflation-Indexed Security, or TIIS. Go to the St. Louis Federal Reserve FRED
4. A measure of real interest rates can be approximated by the Treasury Inflation-Indexed Security, or TIIS. Go to the St. Louis Federal Reserve FRED database, and find data on the five year TIIS (FII5) and a measure of the price index, the personal consumption expenditure price index (PCECTPI). For the frequency setting for the TIIS, choose "quarterly," and for the units setting on (PCECTPI), choose "Percent Change From Year Ago."
Plot both series on the same graph, showing data from 2007 to the most current data available. Use the graph to identify periods of autonomous monetary policy changes. Briefly explain your reasoning.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started