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Macroeconomic Effects of Interest Rate Cuts

era
pre-Volcker
Volcker
Greenspan
all
series
Dow Jones Industrial Average
period (years)
1
2
5
normalization
divide
subtract
Major Fed rate cuts can have wide and varying effects on major macroeconomic variables. This Demonstration shows the change in selected time series following reductions in the Fed Funds rate of 0.5% or more, after a period of rising or level interest rates.
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