Here, you will be introduced to different measures of money. The Federal Reserve Bank of St. Louis maintains a beautiful dataset called FRED. I want you to create a plot of the monetary base, M1, and M2 for the period 2005 through 2014. Define what these different money measures. What do these plots of the different monetary aggregates tell you about money since the Great Recession began? Are there any key concerns about the economy that follow from these observations?
- 7 years ago