Fed Funds Rate and Inflation. Part 1

Notice:  This post has incorrect calculations for changes in the Fed Funds rate.  See Fed Funds Rate and Inflation: Part 1 – Corrected.

How does CPI inflation vary as the Fed Funds rate changes? That is the next question in our investigation of possible cause-and-effect relationships for changes in inflation.


Marriner S. Eccles Federal Reserve Board Building, Wikipedia,
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