Inflation and Nominal Interest Rates in the United States

Erol Balkan and Umit Erol
Additional contact information
Umit Erol: Bilkent University Ankara, Postal: Eskisehir Yolu 8. Km Ankara, 06800, Turkey,, http://bilkent.edu.tr/

Economia Internazionale / International Economics, 1992, vol. 45, issue 2, 164-179

Abstract: The relationship between nominal interest rates and price movements is examined using three alternative Granger causality detection techniques. The statistical advantage of the techniques is that they rely directly on the data and do not assume a priori models or hypotheses. The techniques support similar conclusions. First, nominal interest rates adjust rapidly to changes in the inflation rate. Second, there is short-run positive feedback from interest rates to the inflation rate, indicative of the Fama effect.

Date: 1992
References: Add references at CitEc
Citations:

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: https://EconPapers.repec.org/RePEc:ris:ecoint:0458

Access Statistics for this article

Economia Internazionale / International Economics is currently edited by Giovanni Battista Pittaluga

More articles in Economia Internazionale / International Economics from Camera di Commercio Industria Artigianato Agricoltura di Genova Via Garibaldi 4, 16124 Genova, Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Angela Procopio ().