Interest rates and the fisher effect in India: An empirical study

This study throws light on the importance of adjustment lags, variability of inflation, changes in real income, etc. in the empirical estimation of Fisher hypothesis. Variability of inflation has a significant negative impact on both short- and long-term interest rates in a developing economy like I...

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Bibliographic Details
Published inEconomics letters Vol. 14; no. 1; pp. 17 - 22
Main Author Paul, M.Thomas
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 1984
Elsevier
North Holland
SeriesEconomics Letters
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Summary:This study throws light on the importance of adjustment lags, variability of inflation, changes in real income, etc. in the empirical estimation of Fisher hypothesis. Variability of inflation has a significant negative impact on both short- and long-term interest rates in a developing economy like India. The ‘Philips Curve Effect’ has not been operative in a developing country.
ISSN:0165-1765
1873-7374
DOI:10.1016/0165-1765(84)90022-3