Statistical Method

Granger causality tests were applied to obtain these results. Percent change in the Federal Reserve Board of Governors’ Broad and Major Indexes versus the first-difference of the inflation rate as measured by the CPI, the core CPI, or the Federal Reserve Bank of Cleveland's Median CPI.

All data are stationary.

Tests with the Median CPI extend from March 1981 through August 2009; all others extend from May 1973 through August 2009.

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