FRED QUESTIONS 1. When banks failed in the 1929-1933 period, the lack of deposit

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FRED QUESTIONS
1. When banks failed in the 1929-1933 period, the lack of deposit insurance meant that depositors experienced sizable losses. How big were these losses? For September 1929 through February 1933, plot the deposits in suspended banks (FRED code: M09039USM144NNBR). Download the data and sum the deposits lost to bank failures in 1931. Using this total, compute its ratio to 1931 gross national product of $77.4 billion. Using that ratio, how large would the losses be compared to first-quarter 2016 nominal GDP of $18.3 trillion.
2. Interest rate stability is a common goal of central banks. When has the Federal Reserve been relatively successful at keeping interest rates stable? Compare quarterly changes since 1965 of the federal funds rate (FRED code: FEDFUNDS) with the level of inflation based on the percentage change from year-ago levels of the consumer price index (FRED code: CPIAUCSL). Are stable interest rates associated with high or low inflation? Why?

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