Question
. Go to the website of the Federal Reserve Bank of St. Luis (FRED) and find the data for the Currency Component of M1 (CURRNS),
. Go to the website of the Federal Reserve Bank of St. Luis (FRED) and find the data for the Currency Component of M1 (CURRNS), Total Checkable Deposits (TCDSL), and Excess Reserves of Depository Institutions (EXCRESNS). Use monthly data. (a) Using these data, calculate the value of the currency-to-deposit ratio and plot it from 01/01/2000 to 05/01/2013.
(b) Using these data, calculate the value of the excess reserve-to-deposit ratio and plot it from 01/01/2000 to 05/01/2013.
(c) Using these data and assuming a required reserve ratio of 11%, calculate the value of the money multiplier and plot it from 01/01/2000 to 05/01/2013.
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