Abstract
This paper examines the Fisher hypothesis for a sample of less developed countries. Recognizing the possibility of spurious regression results, tests of the Fisher hypothesis are undertaken utilizing the Johansen-Juselius cointegration procedure. Of the nine countries studied, only Malaysia, Pakistan, and Sri Lanka provide evidence to support the full Fisher effect in which a unit proportional relationship exists between nominal interest rates and inflation.
Original language | English |
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Pages (from-to) | 683-687 |
Number of pages | 5 |
Journal | Applied Economics Letters |
Volume | 4 |
Issue number | 11 |
DOIs | |
State | Published - Nov 1997 |