The Fisher hypothesis: a multi-country analysis
Author
Berument, Hakan
Jelassi, M. M.
Date
2002Source Title
Applied Economics
Print ISSN
0003-6846
Electronic ISSN
1466-4283
Publisher
Routledge
Volume
34
Issue
13
Pages
1645 - 1655
Language
English
Type
ArticleItem Usage Stats
116
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Abstract
This paper tests whether the Fisher hypothesis holds for a sample of 26 countries by assessing the long run relationship between nominal interest rates and inflation rates taking into consideration the short run dynamics of interest rates. The empirical evidence supports the hypothesis that there is a one-to-one relationship between the interest rate and inflation for more than half of the countries under study.