Work

An examination of the Fisher Hypothesis: the case of Turkey

Year: 2008

Type: article

Abstract: This study examines the famous Fisher Hypothesis (FH) for Turkey. FH asserts that nominal interest rates adjust on a one-to-one basis to expected changes in inflation rates. Using the Johansen cointegration method for the Turkish monthly interest rate and inflation rate data, we find that it is possible to determine the long-run relationship—but not the one-to-one basis—between nominal interest rates and inflation. Our findings suggest that full FH does not hold but there is a very powerfull Fisher effect in the case of Turkey from 1990 to 2003.

Source: Applied Economics

DOI: 10.1080/00036840600994112

Authors: Ekrem Gul, Sezgin Acikalin

Institutions: Bilecik Şeyh Edebali Üniversitesi, Kütahya Dumlupınar Üniversitesi

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2115646832

FWCI: 3.55

Cites: 19

Cited by: 47

Related to: 10