Pubblicato online: 14 mag 2018
Pagine: 203 - 218
Ricevuto: 12 apr 2017
Accettato: 20 mag 2017
DOI: https://doi.org/10.2478/jcbtp-2018-0019
Parole chiave
© 2017 Tayfur Bayat et al., published by De Gruyter Open
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.
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.