The Inverted Fisher Hypothesis : Inflation Forecastability and Asset Substitution" /

This paper examines the implications of inflation persistence for the inverted Fisher hypothesis that nominal interest rates do not adjust to inflation because of a high degree of substitutability between money and bonds. It is emphasized that the substitutability between nominal assets and capital...

詳細記述

書誌詳細
第一著者: Choi, Woon
フォーマット: 雑誌
言語:English
出版事項: Washington, D.C. : International Monetary Fund, 2000.
シリーズ:IMF Working Papers; Working Paper ; No. 2000/194
オンライン・アクセス:Full text available on IMF
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a This paper examines the implications of inflation persistence for the inverted Fisher hypothesis that nominal interest rates do not adjust to inflation because of a high degree of substitutability between money and bonds. It is emphasized that the substitutability between nominal assets and capital renders the hypothesis inconsistent with the data when inflation persistence is high. Using a switching regression model, the analysis allows the reflection of inflation in interest rates to vary according to the degree of inflation persistence or forecastability. The hypothesis is supported by U.S. data only when inflation forecastability is below a certain threshold. 
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830 0 |a IMF Working Papers; Working Paper ;  |v No. 2000/194 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2000/194/001.2000.issue-194-en.xml  |z IMF e-Library