There exists a debate among monetary policymakers as to the appropriate inflation measure that should be used
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There exists a debate among monetary policymakers as to the appropriate inflation measure that should be used to guide policies. Four alternatives are the consumer price index, the consumer price index excluding food and energy prices, the personal consumption expenditures chain-type price index (monthly), and the personal consumption expenditures chain-type price index excluding food and energy prices. Calculate 12-month percentage rates of increase in each of these measures from 2000 up to the present, compare, and discuss.
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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In the broadest terms monetary policy works by spurring or restraining growth of ove...View the full answer
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Dudhat Vaidehi
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