The Impact of Money Supply Volatility on the Fisher Effect –A Botswana Empirical Perspective

Mpho Bosupeng and Simangaliso Biza-Khupe

MPRA Paper from University Library of Munich, Germany

Abstract: To the extent that these authors have been able to determine, existing literature on the Fisher Effect has only attempted to vary methodological approaches to test for the existence and validity of the Fisher hypothesis. It is the objective of this paper to expand on the literature by determining the degree of influence of money supply changes on the validity and existence of the Fisher Effect. The study examines interest rates and money supply quantities in Botswana from 1989 to 2013 and uses the Johansen Cointegration test to determine the strength of the relationships. The results indicate that there is no long run relationship between money supply, inflation, as well as the Fisher Effect. Subsequently, the study recommends potential areas of research which should be explored to verify further money supply volatility effects on the Fisher Effect.

Keywords: interest rates; inflation; money supply (search for similar items in EconPapers)
JEL-codes: E43 (search for similar items in EconPapers)
Date: 2015, Revised 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Applied Business and Economics (JABE) 17.1(2015): pp. 45-53

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/77920/1/MPRA_paper_77920.pdf original version (application/pdf)

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:pra:mprapa:77920

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().