Produce a graph of the inflation rate and the money growth rate, as measured by the growth
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Produce a graph of the inflation rate and the money growth rate, as measured by the growth rate in M1. Use 12-month percentage changes to measure rates of increase in each case. Discuss what you see in the graph. Does this indicate a clear connnection between money growth and inflation?
Answer the question using the Federal Reserve Bank of St. Louis’s FRED database, accessible at http://research.stlouisfed.org/fred2/
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