RELATION TO MONEY AND PRICES

with P lagged behind i, since it is apparent at a glancethat r decreases with the lagging of P.

When the parabolic trend is eliminated, the correla-tion coefficients for the cycles become insignificant ex-

am BRITAIN 182011924

1898-1924

1820-1864

1865-1897

1900-1927

UNITED STATES

Lag, In Tears, of Interest Hates inrespect to Prices

CHART 58

Correlation Coefficients Between P and i with Straight Line TrendsEliminated. Yearly Data, Great Britain , 1820-1865; 1865-1897; 1897-1924: United States , 1900-1927.

cept for the period including the World War. The highestr for the British data for 1820-1864 is + 0.319 when iis lagged one year; for 1865-1897, the highest r is + 0.045with i lagged two years; for 1898-1924, r is + 0.829 withno lagging, and + 0.817 when i is lagged one year. The

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