Arbeitspapier
The long-run relationship between interest rates and inflation: some cross-country evidence
This paper analyzes the effect of anticipated inflation on nominal interest rates, paying special attention to the stability of this relationship over various regimes. These regimes are analyzed to find out whether the inflation forecastability proposition recently advanced by Barsky explains the observed poor performance of the Fisher equation with historical data. The analyses make use of the so-called threshold and digression models and data from 11 western countries for 1875 - 1984. The main result of this paper is that the forecastability proposition does not explain the weakness of the anticipated inflation effect on interest rates. Rather, various institutional factors seem to be of more importance.
- ISBN
-
951-686-207-1
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Finland Discussion Papers ; No. 20/1989
- Classification
-
Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Virén, Matti
- Event
-
Veröffentlichung
- (who)
-
Bank of Finland
- (where)
-
Helsinki
- (when)
-
1989
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Virén, Matti
- Bank of Finland
Time of origin
- 1989
Other Objects (12)
Interest rates and budget deficits: Cross-country evidence from the period 1924-1938
Forecasting with a forward-looking DGE model: combining long-run views of financial markes with macro forecasting
Household saving, interest rates, inflation and taxation: some cross-country evidence
Bank of Finland's long-run forecast framework with human capital
Export pricing and the cross-country correlation of stock prices
On the long-run calibration of the credit-to-GDP gap as a banking crisis predictor
A case for interest rate smoothing
Ageing, interest rates, and financial flows
Granger causality between money, output, prices and interest rates: Some cross-country evidence from the period 1875 - 1984
The level of a central bank's international reserves: theory and cross-country analysis
Nonlinear dynamics of interest rate and inflation
Cross-country asymmetries in euro area monetary transmission: The role of national financial systems
Interest rates and budget deficits: Cross-country evidence from the period 1924-1938
Forecasting with a forward-looking DGE model: combining long-run views of financial markes with macro forecasting
Household saving, interest rates, inflation and taxation: some cross-country evidence
Bank of Finland's long-run forecast framework with human capital
Export pricing and the cross-country correlation of stock prices
On the long-run calibration of the credit-to-GDP gap as a banking crisis predictor
A case for interest rate smoothing
Ageing, interest rates, and financial flows
Granger causality between money, output, prices and interest rates: Some cross-country evidence from the period 1875 - 1984
The level of a central bank's international reserves: theory and cross-country analysis
Nonlinear dynamics of interest rate and inflation
Cross-country asymmetries in euro area monetary transmission: The role of national financial systems
Interest rates and budget deficits: Cross-country evidence from the period 1924-1938
Forecasting with a forward-looking DGE model: combining long-run views of financial markes with macro forecasting
Household saving, interest rates, inflation and taxation: some cross-country evidence
Bank of Finland's long-run forecast framework with human capital
Export pricing and the cross-country correlation of stock prices
On the long-run calibration of the credit-to-GDP gap as a banking crisis predictor
A case for interest rate smoothing
Ageing, interest rates, and financial flows
Granger causality between money, output, prices and interest rates: Some cross-country evidence from the period 1875 - 1984
The level of a central bank's international reserves: theory and cross-country analysis
Nonlinear dynamics of interest rate and inflation