Select any combination of variables by clicking on the check-boxes or the variable name. Note: You may choose a maximum of two variables.
Click on the Plot Data to plot the graph.
Toggle the Show Recessions button to highlight recession years.
Toggle the Series Statistics button to display simple descriptive statistics on each selected variable.
Click on the Yield Curve button to display the Yield Curve for a particular quarter. By using your mouse-cursor to drag on the slider button below the years on the horizontal axis of the data plot, you will be able to select any date between 1960:1 and 2004:2.
Click on the Scatter Plot button to toggle on or off a scatter plot of the two chosen series. Please note: you must select two variables to use this feature. The green cross-lines pin-point the current quarter selected by the slider described in 5). A sample correlation measure is displayed in this scatter plot window.
Press Reset to start over.
Questions:
Plot the growth rates of M1 and M2 on the same graph Compare the relationship between the two growth rates before and after 1980.
What explains the divergence in the growth rates of M1 and M2 after 1980?
Plot the growth rates of M2 and M3 on the same graph. What do you notice about the general relationship between these two series over the entire time period?
What explains the relationship you observe between M2 and M3 growth?
