Abstract
The Fisher hypothesis claims that changes in the expected inflation rate will be fully reflected in nominal interest rates, and hence that real interest rates will remain constant over time. Evidence with Australian data from 1965 to 1990 suggests that the Fisher effect does not hold in the long-run. Analysis is performed using recently developed econometric techniques which take account of possible nonstationarity in the date. Attention is also given to the effects of financial market deregulation on interest rates.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.