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Interest Rates and Ination 1. Go to the Federal Reserve Economic Data (FRED) database at https: //fred.stlouisfed.org/ 2. Find the three-month treasury bill: secondary market

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Interest Rates and Ination 1. Go to the \"Federal Reserve Economic Data\" (FRED) database at https: //fred.stlouisfed.org/ 2. Find the three-month treasury bill: secondary market rate, and the consumer price index for all urban consumers: all items. 3. DOWnload both at a monthly frequency from lQO-present 4. Calculate the lagged yearly net ination rate from the CPI data in percent terms. (For period t, divide period t's CPI by period t 12's CPI. This is gross ination. Subtract the gross ination by 1 and multiply by 100 to get the net ination rate in percent: Wt12)t=100' (() 1)) Plot and compare the net ination rate and the threemonth treasury bill together from 1960 present: what do you notice? In economics, you frequently see the \"Fisher Equation\

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