Plot the monetary base (M0) along with your choice of price index (consumer price index, implicit GDP
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Plot the monetary base (M0) along with your choice of price index (consumer price index, implicit GDP deflator, for example). How do you square what you see in the chart with the long-run neutrality of money? Discuss.
Answer this question using the Federal Reserve Bank of St. Louis’s FRED database, accessible at http://research.stlouisfed.org/fred2/
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The simplest longrun neutrality proposition specifies ...View the full answer
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Dudhat Vaidehi
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