Assignment 1 Solutions

Assignment 1 Solutions - ECON 305 A01/A02 Assignment 1...

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ECON 305 A01/A02 Assignment 1 Solutions Tuesday September 20, 2011 1. Get the monthly data for 1970 to 2009 on the M3 (gross) monetary aggregate (CANSIM series V41552794). This can be retrieved from CANSIM via the UVIC Library system. ( http://library.uvic.ca/gov_data/fed/cansim2.html ) a. [10 marks] Calculate the money growth rate over the entire period and attach a time series plot. Note: graph should have a title and axes labels for full marks. Average Growth Rate over entire period: 0.7% b. [5 marks] Calculate the average monetary growth rate and the standard deviation over each of the last four decades Decade Average Growth Volatility 1970 1.282031 0.658836 1980 0.684464 0.672597 1990 0.408558 0.363855 2000 0.609304 0.515057 c. [5 marks] Which decade had the lowest money growth? Which had the highest? The 1990s exhibited the lowest average monthly monetary growth of 0.4% or 0.004; the 1970s exhibited the highest average monetary growth of 1.3% or 0.013. d.
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Assignment 1 Solutions - ECON 305 A01/A02 Assignment 1...

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