<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In this study, we aim to investigate the relationship between interest rate and inflation rate in the context of the Fisher effect hypothesis for Fragile five economies. In this regard, we employ recently developed panel co-integration and panel causality test methods. The bi-directional causal relation between interest rate and inflation rate exists only in Brazil and Indonesia. On the other hand, there is no causation linkage in India. Results imply that Fisher effect exists only in Brazil and Indonesia.</p></abstract>

In this study, we aim to investigate the relationship between interest rate and inflation rate in the context of the Fisher effect hypothesis for Fragile five economies. In this regard, we employ recently developed panel co-integration and panel causality test methods. The bi-directional causal relation between interest rate and inflation rate exists only in Brazil and Indonesia. On the other hand, there is no causation linkage in India. Results imply that Fisher effect exists only in Brazil and Indonesia.

Re-Visiting Fisher Effect for Fragile Five Economies

Faculty of Economics and Administrative Sciences, Department of Economics

Faculty of Social Sciences and Humanities, Department of Economics

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Re-Visiting Fisher Effect for Fragile Five Economies"}

In this study, we aim to investigate the relationship between interest rate and inflation rate in the context of the Fisher effect hypothesis for Fragile five...

Re-Visiting Fisher Effect for Fragile Five Economies

Published Online: May 14, 2018

Page range: 203 - 218

Received: Apr 12, 2017

Accepted: May 20, 2017

DOI: https://doi.org/10.2478/jcbtp-2018-0019

Keywords
Fisher effect, panel data, fragile five economies

© 2017 Tayfur Bayat et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Re-Visiting Fisher Effect for Fragile Five Economies

Published Online: May 14, 2018

Page range: 203 - 218

Received: Apr 12, 2017

Accepted: May 20, 2017

DOI: https://doi.org/10.2478/jcbtp-2018-0019

KeywordsFisher effect, panel data, fragile five economies

© 2017 Tayfur Bayat et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Fisher effect, panel data, fragile five economies