I updated the long and short term interest rate graph from this post with latest data and one- and two-sigma error bands (errors for monthly data, 1960-2016):
...
Update 6 Feb 2016
Linear scale graph:
Friday, February 5, 2016
4 comments:
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Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.
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May I ask why you are using a logarithmic scale?
ReplyDeleteThe main reason is that the short rate would just look like zero, smashed against the axis. On a log scale, you can see the correlation with 1/MB better that I discuss here:
Deletehttp://informationtransfereconomics.blogspot.com/2015/08/explicit-implicit-models.html
And since it is a model of both interest rates:
log(r) = c log(NGDP/M) - b
with
c = 3.02
b = 11.7
and M = MB for short rates and M = M0 (MB minus reserves) for long rates, I like to show both on the same graph.
But it is easy enough to show both ... I will update.
DeleteAh. I see.
Delete