Economics at your fingertips  

Convergence in Interest Rates and Inflation Rates across Countries and over Time

Pierre Siklos () and Mark Wohar ()

Review of International Economics, 1997, vol. 5, issue 1, 129-41

Abstract: We examine the relationship between interest rates and inflation rates for 10 countries during the period 1974-95. We find evidence of a unique cointegrating relationship between nominal interest rates of European Monetary System (EMS) countries, the US and Canada, and the US, Germany, and Japan. No similar relationship is obtained between inflation rates with one exception, namely that between the US and Canada. We interpret these results as convergence in inflation but not in interest rates. Hence, if interest rates represent an indicator of monetary policy, the countries considered have attempted to implement independent policies but not to an extent which produced divergent trends in inflation. Copyright 1997 by Blackwell Publishing Ltd.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (34) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2019-08-20
Handle: RePEc:bla:reviec:v:5:y:1997:i:1:p:129-41