How does the variability of annual inflation an indicator of inflation risk change over time?

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How does the variability of annual inflation – an indicator of inflation risk – change over time? Graph the percent change from a year ago of the consumer price index (FRED code: CPIAUCSL) since1990 and visually compare the decades of the 1990s, the 2000s, and the period that began in 2010.

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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