Question: In 2012 the Federal Reserve announced an inflation objective of

In 2012, the Federal Reserve announced an inflation objective of 2 percent “over the longer run” for the price index of personal consumption expenditures (FRED code: PCEPI). However, many analysts focus on the “core” price index (FRED code: PCEPILFE), which omits the volatile food and energy components. For the Fed’s horizon, does this difference matter? Plot the percent change from a year ago for both inflation measures since 2000. Download the data and compute the averages and standard deviations over that period. What do you conclude?




Sale on SolutionInn
Sales1
Views100
Comments
  • CreatedOctober 02, 2014
  • Files Included
Post your question
5000