The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

Exercise 27

One of the largest single influences on the level of interest rates is inflation. A number of sites report inflation over time. Go to ftp://ftp.bls.gov/pub/special.requests/ cpi/cpiai.txt and review the data available. Note that the last columns report various averages. Move these data into a spreadsheet, using the method discussed in the Web exploration at the end of Chapter 1. What has the average rate of inflation been since 1950, 1960, 1970, 1980, and 1990? Which year had the lowest level of inflation? Which year had the highest?