Re-Visiting Fisher Effect for Fragile Five Economies

Tayfur Bayat (), Selim Kayhan () and İzzet Taşar ()
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Tayfur Bayat: Inonu University, Faculty of Economics and Administrative Sciences, Department of Economics, Malatya. Turkey
Selim Kayhan: Necmettin Erbakan University, Faculty of Social Sciences and Humanities, Department of Economics, Konya, Turkey
İzzet Taşar: Corresponding Author, Firat University, Faculty of Economics and Administrative Sciences, Department of Economics, Elazig, Turkey

Journal of Central Banking Theory and Practice, 2018, vol. 7, issue 2, 203-218

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.

Keywords: Fisher effect; panel data; fragile five economies. (search for similar items in EconPapers)
JEL-codes: C22 E43 E58 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:cbk:journl:v:7:y:2018:i:2:p:203-218

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