Constructing a Yield Curve 1. Go to the St. Louis Federal Reserve FRED database, and find...

Constructing a Yield Curve 1. Go to the St. Louis Federal Reserve FRED database, and find daily yield data on the following U.S. treasuries securities: One-month (DGS1MO) Three-month (DGS3MO) Six-month (DGS6MO) One-year (DGS1) Two-year (DGS2) Three-year (DGS3) Five-year (DGS5) Seven-years (DGS7) Ten-year (DGS10) 20-year (DGS20) 30-year (DGS30) Download the last full year of data available into a spreadsheet.

a. Construct a yield curve by creating a line graph for the most recent day of data available, and for the same day (or as close to the same day as possible) one year prior, across all maturities. How do the yield curves compare? What does the changing slope say about potential changes in economic conditions?

b. Determine the date of the most recent Federal Open Market Committee (FOMC) policy statement. Construct yield curves for both the day before the policy statement was released and the day on which the policy was released. Was there any significant change in the yield curve as a result of the policy statement? How might this be explained?

Expert Solution

Part B

Rahul Sunny answered 2 years ago

Gathering and graphing data Go to the Federal Reserve Bank of St. Louis FRED database and...

Gathering and graphing data Go to the Federal Reserve Bank of St. Louis FRED database and obtain annual data from 1970 to 2016 on “Constant GDP per Capita” for each of the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States). a. Move each country’s data on the same Excel spreadsheet and plot the series. Which country had the highest GDP per capita in 1970? Which country had the highest GDP per capita in 2016?

Use the St. Louis Federal Reserve (FRED) database to find the following: 1. Find U.S. Real...

Use the St. Louis Federal Reserve (FRED) database to find the following: 1. Find U.S. Real Gross Domestic Product per capita. Submit URL 2. Using a time frame for the year (Q4 2018), select the same time frame a year earlier (Q4 2017), FY 18. 3. Compute the change in real GDP per capita for the year in question. That is equal to: (real GDP per capita in 2018 - real GDP per capita in 2017)/(real GDP per capita in...

Go to the web site of the Federal Reserve Bank of St. Louis (FRED)(research.stlouisfed.org/fred2/) and find...

Go to the web site of the Federal Reserve Bank of St. Louis (FRED)(research.stlouisfed.org/fred2/) and find the most recent values and values from the same quarter in 1985 fro nominal GDP, the Velocity of M1 Money Stock (M1V), and the Velocity of M2 Money Stock (M2V). a. Using these data, Calculate M1 money supply and the M2 money supply for both periods. b. Describe how M1 velocity and M2 velocity differ in the two quarters.

Use FRED from the St. Louis Federal Reserve to find the labor force participation graph for...

Use FRED from the St. Louis Federal Reserve to find the labor force participation graph for the United States since 1950 for the entire labor force, men only, and women only. Describe the trends you see in the graph and suggest two to three reasons that may explain this shift.

1 Plotting the Phillips Curve 1. Go to the Federal Reserve Economic Data (FRED) website and...

1 Plotting the Phillips Curve 1. Go to the Federal Reserve Economic Data (FRED) website and download the yearly inflation and unemployment series (FPCPITOTLZGUSA and UNRATE) for the U.S. economy. (For the latter series you will need to change the frequency. You can do that in FRED.) 2. Plot the Phillips curve (PC) for two different periods: 1960–1972 and 2000–2015. 3. Run a regression of inflation on unemployment for both time periods. What coefficients for the slope do you obtain?...

The Federal Reserve Bank of St. Louis provides these data online

The following two plots on the next page show exponentially weighted moving averages of the percentage change in the amount of household credit market debt. The time series is quarterly, from 1960 through the fourth quarter of 2011. In the first plot the weight for the EWMA w = 0.5, whereas in the second plot w = 0.9. The EWMA in both cases is shown as a red line with the surrounding data. (The Federal Reserve Bank of St. Louis...

Question 1. (Excel exercise) The Federal Reserve Bank of St. Louis offers a wide range of...

Question 1. (Excel exercise) The Federal Reserve Bank of St. Louis offers a wide range of economic data at its Web site, called FRED (fred.stlouisfed.org/). Use these data to examine real GDP for Canada from 1960 to 2011. a. Download annual data (CANRGDPR) on real GDP from 1960 to 2011. Calculate the annual growth rates, starting with 1960. Are there years in which real GDP decreased? With what events are these years associated? b. Calculate the average rate of real...

[1pt] Google the St Louis Economics Database (“Fred II”) and download the excel monthly constant maturity...

[1pt] Google the St Louis Economics Database (“Fred II”) and download the excel monthly constant maturity 1-year (GS1) and [1pt] monthly 10-year series (GS10). [1pt] Similarly, google the Bureau of Labor Statistics (“BLS”) and create a spreadsheet of the monthly all-urban CPI (“inflation”) index.[1] [1pt] Download the nominal Case-Shiller index for the Los Angeles by similarly obtaining the necessary data from a web-search (Standard and Poor’s or FRED II).[2] [1pt] Download the (not seasonally adjusted) monthly shelter component of CPI...

Go to FRED database and find data on the 1-year Treasury Rate (GS1) and the GDP...

Go to FRED database and find data on the 1-year Treasury Rate (GS1) and the GDP Deflator price index (GDPDEF). For GS1 choose the frequencysetting as “quarterly”; for the (GDPDEF) set the unitssetting to “Percent Change From Year Ago”; and download both data series. For the questions below assume inflation is a good proxy for inflation expectations. From the current period of data available, compare inflation and the interest rate to what it was in 2010: Q1. Does the Fisher effect hold? Why...

Read the article from the Federal Reserve Bank of St. Louis, "Choices are Everywhere: Why can't...

Read the article from the Federal Reserve Bank of St. Louis, "Choices are Everywhere: Why can't we just have it all?" Consider a government spending program you have read about in the news or research one online. In a well-composed post, explain the opportunity cost of that government decision. What was the next best alternative in your opinion? Describe how “scarcity” factors into the decision process. (Remember that all things are scarce.) Please answer in 150 words or more. Be...

Question