Applied Economics Letters | Vassar College Digital Library

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Is it really the Fisher effect?

Publication Date

2006-March-01

Document Type

working paper

Authors

Johnson, Paul A.

Department or Program

Economics Department

Document Type

Working Paper

Abstract

Many researchers have used a cointegration approach to test for the Fisher effect. This note argues that the cointegration of the nominal interest rate and the inflation rate is consistent with any theory implying a stationary real interest rate and...

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