Abstract

The purpose of this study is to analyze the relationship between the interest rate and inflation rate in the context of Fisher hypothesis (1930) by using the data regarding Turkish Economy Differing from the available literature, the validity of Fisher hypothesis for Turkey was assessed according to the alternative interest rates (rediscount interest rate, deposit interest rate and the monetary policy interest rate ). The long-term relationship among variables was analyzed via ARDL bound test. As a result of this analysis, it was determined that a stronger Fisher impact is valid for Turkish economy when the monetary interest rate is based as interest rate.

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