scholarly journals Is the Fisher Effect for Real? A Reexamination of the Relationship Between Inflation and Interest Rates

10.3386/w3632 ◽  
1991 ◽  
Author(s):  
Frederic Mishkin
Keyword(s):  
Interest Rates ◽  
Fisher Effect ◽  
The Relationship

scholarly journals An Empirical Evidence of International Fisher Effect in Bangladesh with India and China: A Time-Series Approach

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Kazi Ashraful Alam ◽  
Anisuzzaman Shuvo
Keyword(s):  
Time Series ◽  
Exchange Rates ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Fisher Effect ◽  
Nominal Interest Rates ◽  
Trading Partners ◽  
Time Series Approach ◽  
The Relationship ◽  
Casual Relationship

This paper is an attempt to examine the empirical evidence of International Fisher Effect (IFE) between Bangladesh and its two other major trading partners, China and India. The IFE uses interest rate differentials to explain why exchange rates change over time. A time series approach is considered to trace the relationship between nominal interest rates and exchange rates in these countries. The estimated value, by applying OLS, is used to determine the casual relationship between interest rates and exchange rates for quarterly data from 4th Quarter, 1995 to the 2nd Quarter, 2008. The empirical results suggest that there is a little correlation between exchange rates and interest rates differential for Bangladesh with China and Bangladesh with India, and the relationship between the variables is also not noteworthy for Bangladesh. Further, the trends advocate that the forecasting of exchange rates with the hypothesis of IFE is not realistic for these countries.

scholarly journals The Relationship between Inflation and Interest Rates in the UK: The Nonlinear ARDL Approach

2020 ◽  
Vol 9 (3) ◽  
pp. 77-86
Author(s):  
Ismet Gocer ◽  
Serdar Ongan
Keyword(s):  
Interest Rates ◽  
Fisher Effect ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Inflation Rates ◽  
Ardl Approach ◽  
Nonlinear Ardl Model ◽  
The Uk ◽  
First Time ◽  
The Relationship

AbstractThis study reconsiders the Fisher effect for the UK from a different methodological perspective. To this aim, the nonlinear ARDL model recently developed by Shin et al. (2014), is applied over the periods of 1995M1-2008M9 and 2008M10-2018M1. This model decomposes the changes in original inflation series as two new series: increases and decreases in inflation rates. Hence, it enables us to examine the Fisher effect in terms of increases and decreases in inflation separately. The empirical findings support asymmetrically partial Fisher effects for the UK in the long-run only for the first period. Additionally, this study attempts to describe and introduce a different version of the partial effect concept for the first time for the UK.

scholarly journals Was the Gibson Paradox for real? A Wicksellian study of the relationship between interest rates and prices

2014 ◽  
Vol 21 (2) ◽  
pp. 139-163 ◽  
Author(s):  
Jagjit S. Chadha ◽  
Morris Perlman
Keyword(s):  
Interest Rates ◽  
Positive Relationship ◽  
Formal Model ◽  
Natural Rate ◽  
Market Rate ◽  
Long Run ◽  
Advanced Economies ◽  
The Uk ◽  
Gibson Paradox ◽  
The Relationship

We examine the relationship between prices and interest rates for seven advanced economies in the period up to 1913, emphasising the UK. There is a significant long-run positive relationship between prices and interest rates for the core commodity standard countries. Keynes ([1930] 1971) labelled this positive relationship the ‘Gibson Paradox’. A number of theories have been put forward as possible explanations of the paradox but they do not fit the long-run pattern of the relationship. We find that a formal model in the spirit of Wicksell (1907) and Keynes ([1930] 1971) offers an explanation for the paradox: where the need to stabilise the banking sector's reserve ratio, in the presence of an uncertain ‘natural’ rate, can lead to persistent deviations of the market rate of interest from its ‘natural’ level and consequently long-run swings in the price level.

scholarly journals Asymmetric Macroeconomic Shocks and Asset Price Behaviors in Selected African Countries

2021 ◽  
Vol 11 (2) ◽  
pp. 90
Author(s):  
Saliu Mojeed Olanrewaju ◽  
Ogunleye Edward Oladipo
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Asset Prices ◽  
Asset Price ◽  
Panel Cointegration ◽  
African Countries ◽  
Vector Autoregressive ◽  
Macroeconomic Variables ◽  
Real Estate Prices ◽  
The Relationship

This study examines the relationship between Asset prices (Stock and Real estate prices) and Macroeconomic variables in four selected African countries. The study employs the Westerlund Error Correction Based Panel Cointegration test and Eight-variable Structural Vector Autoregressive model to examine the relationship between asset prices and macroeconomic variables. Findings from the study confirm that no long-run relationship exists between both Asset prices and macroeconomic variables. The study equally reveals that portfolio diversification benefits of both stock and real estate markets are more pronounced in the period of a boom than the recession period in Africa. The results also show that GDP growth rate shock exerts a significant impact on both asset prices during expansion and recession periods. The study reveals that foreign interest rates and World oil price shocks are better predictors of both stock and real estate prices during the crisis period than in the expansion period.

scholarly journals INTEREST RATES, FISHER EFFECT AND ECONOMIC DEVELOPMENT IN TURKEY, 1989-2011

2016 ◽  
Vol 25 (2) ◽  
pp. 95-100
Author(s):  
Selahattin GÜR?? ◽  
Burak GÜR?? ◽  
Turgut ÜN
Keyword(s):  
Economic Development ◽  
Interest Rates ◽  
Test Validity ◽  
Threshold Cointegration ◽  
Fisher Effect ◽  
Empirical Results ◽  
Distributed Lag ◽  
Leading Indicator ◽  
Nominal Interest Rates ◽  
Fisher Hypothesis

This paper investigates the validity of the Fisher Hypothesis in Turkey coveringthe period 2003 – 2012. To test validity of Fisher Hypothesis, this paper uses anAutoregressive Distributed Lag test for threshold cointegration recently introduced in theliterature by Li and Lee (2010). The empirical results which are obtained from this paperindicate that Fisher hypothesis is valid for Turkey, meaning nominal interest rates wouldbe an important leading indicator for inflation.

scholarly journals Some elements of the forensic characterization of bribery

2021 ◽  
Vol 1 (1) ◽  
pp. 240-244
Keyword(s):  
Interest Rates ◽  
Bank Loans ◽  
Payment Systems ◽  
Electronic Money ◽  
Law Enforcement Agencies ◽  
Official Position ◽  
The Subject ◽  
The Relationship ◽  
Investigation Process

In the article, the authors consider the criminalistics aspect of a corruption crime on the example of bribery, the subject of criminal encroachment, the place and time of Commission. The characteristics and features of methods of committing bribery have been given. It has been concluded that the nature of the mechanism in each specific case is directly related to the way the crimes were committed and the personality of the participants, and their interest in concealing the fact of illegal actions and their high official position always serve as a guarantee of the absence of trace information. Bribery has a high latency and has a direct impact on strengthening the attitude of tolerance in society to the manifestation of such behavior, affects the unwillingness of a significant number of citizens to assist law enforcement agencies in identifying, disclosing and investigating corruption crimes. Recently, electronic money has become widespread, which allows offenders to use the various technical capabilities of numerous electronic payment systems and the Internet. The use of electronic money significantly complicates the process of identifying bribe-givers and bribe-takers. The subject of a bribe, together with money and other property, can be property services rendered free of charge, but payable, and certain material benefits, which should be understood, in particular, the underestimation of the value of the transferred property, privatized objects, a decrease in rental payments, interest rates for use of bank loans, etc. The nature of the subject of a bribe may also indicate the nature of the relationship between the subjects of corrupt relations. Nevertheless, the typical characteristics of the personality of the offender, the subject of the bribe, the method of committing the crime and the mechanisms of trace formation, in any case, are the basis for planning and organizing the investigation process of the acts in question.

scholarly journals Valuation of Government Bonds: the Exchange Rate Is an Important Aspect

2017 ◽  
Vol 65 (6) ◽  
pp. 1911-1916
Author(s):  
Blanka Francová
Keyword(s):  
Regression Model ◽  
Interest Rates ◽  
Arbitrage Pricing Theory ◽  
Arbitrage Pricing ◽  
Data Set ◽  
Government Bonds ◽  
Exchange Risk ◽  
Pricing Theory ◽  
Multi Linear Regression ◽  
The Relationship

Interest rates are currently very low in the countries. In these countries bonds are issued with low or negative yields. In this paper, I empirically investigate the factors that affect the price of bonds. I follow international arbitrage pricing theory to determine the relationship between factors and the price of bonds. The international arbitrage pricing theory applies a multi‑linear regression model. The regression model is used for emerging markets and developing markets separately. I have a unique data set of 46 countries. The main data are the monthly returns on government bonds in the period 2010–2015. Exchange risk influences the bond prices. Currency movements can bring further yield for investors.

Finance

2021 ◽  
pp. 305-350
Keyword(s):  
Interest Rates ◽  
Financial Management ◽  
Financial Analysis ◽  
Time Value Of Money ◽  
Advantages And Disadvantages ◽  
Time Value ◽  
Tools And Techniques ◽  
Relationship Of ◽  
The Relationship ◽  
Value Of Money

This chapter deals with the principles of finance as applied in the foodservice industry. It discusses the concept of revenue management, financial analysis and reporting, financial control, principles of budgeting, and forecasting. Specifically, it discusses finance in general and of the financial system and the meaning and application of financial management. It introduces the basics of the advantages and disadvantages of the different types of organizations. The important topics presented are the relationship of finance to other business disciplines, basic financial information in decision-making, understand financial statements, and financial ratios. It applies several analysis tools and techniques to learn about the time value of money, interest, and interest rates.

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