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.
Press Reset to start over.
Questions:
Plot the US inflation series and click on the show recessions button. What happens to inflation during recessions? What do you observe about inflation before recessions?
Plot the US output gap series against the percentage change in the rate of inflation. What does the graph tell you about the relationship between these two variables? (Note that the output gap series is lagged 6 quarters.)
Plot the US rate of inflation with the rate of inflation that excludes food and energy. Why would you want to exclude these components from the inflation series? How do the two series differ?
Plot the US rate of inflation (measured by the CPI) with the personal consumption expenditure series for the US. What do you observe about the behavior of these two series? What accounts for the differences in the two series?
Plot the US rate of inflation with the rate of inflation in the Eurozone. What do these two series have in common?
