Question: Plot the percentage change from a year ago of the
Plot the percentage change from a year ago of the velocity of money (FRED code: A14187USA163NNBR) between 1922 and 1939. Compare the typical scales of the velocity declines during the recessions of this “interwar” period and the velocity declines during the recessions shown in Panel B of Figure 20.4. Were the 1929-33 and 2007-2009 period’s special? What role might wealth have played in these two episodes?
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