Question
Using the Statistics Canada CANSIM database, obtain monthly data (for years 1963-2021) on the M1++ (gross) and the M2++ (gross) money supply and compute money
Using the Statistics Canada CANSIM database, obtain monthly data (for years 1963-2021) on the M1++ (gross) and the M2++ (gross) money supply and compute money multipliers for each variable. Using a graph, show if the money multipliers are increasing or decreasing and explain your findings.
Here is some of the data I have found:
I do not know how to use the data to calculate the money multiplier for M1++ and M2++. I was wondering if I have to use the formula below? and if so, where do I get the other variables from?
m1 = 1 + (C/D)/[rr + (ER/D) + (C/D)].
Currency in circulation /Deposits = currency ratio
Excess Reserves /Deposits = excess reserves ratio
rr = Required reserve ratio
M2++ (gross) (M2+ M1++ (gross) 14 NOV-67 Dec-67 Jan-68 36,960 23,516 Feb-68 37,238 23,452 Mar-68 37,350 23,400 Apr-68 37,749 23,316 May-68 38,200 23,537 Jun-68 38,469 23,521 Jul-68 38,869 23,668 Aug-68 39,504 24,076 Sep-68 39,792 24,134 Oct-68 40,180 24,340 Nov-68 40,521 24,580 Dec-68 40,751 24,733 Jan-69 41,250 25,224 Feb-69 41,343 25,022 Mar-69 41,664 25,117 Apr-69 41,852 25,288 May-69 42,194 25,312 Jun-69 42,228 25,401 Jul-69 42,468 25,420 Aug-69 42,608 25,322 Sep-69 43,207 25,462 Oct-69 43,363 25,727 Nov-69 43,682 25,912 Dec-69 44,141 26,017 Jan-70 44,446 26,005 Feb-70 44,742 25,957 Mar-70 44,905 26,330 Apr-70 45,639 26,354 M2++ (gross) (M2+ M1++ (gross) 14 NOV-67 Dec-67 Jan-68 36,960 23,516 Feb-68 37,238 23,452 Mar-68 37,350 23,400 Apr-68 37,749 23,316 May-68 38,200 23,537 Jun-68 38,469 23,521 Jul-68 38,869 23,668 Aug-68 39,504 24,076 Sep-68 39,792 24,134 Oct-68 40,180 24,340 Nov-68 40,521 24,580 Dec-68 40,751 24,733 Jan-69 41,250 25,224 Feb-69 41,343 25,022 Mar-69 41,664 25,117 Apr-69 41,852 25,288 May-69 42,194 25,312 Jun-69 42,228 25,401 Jul-69 42,468 25,420 Aug-69 42,608 25,322 Sep-69 43,207 25,462 Oct-69 43,363 25,727 Nov-69 43,682 25,912 Dec-69 44,141 26,017 Jan-70 44,446 26,005 Feb-70 44,742 25,957 Mar-70 44,905 26,330 Apr-70 45,639 26,354Step by Step Solution
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