Plot on a weekly basis the ratio of currency (FRED code: CURRENCY) to checkable deposits (FRED code:

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Plot on a weekly basis the ratio of currency (FRED code: CURRENCY) to checkable deposits (FRED code: TCD) from the start of 2000 through 2002. Download the data and identify the week of the downward spike in the graph. Do you think the spike reflects the currency term in the numerator or the deposits term in the denominator? Explain your reasoning.

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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