An examination of the Fisher Hypothesis: The case of Turkey

Gul E., Acikalin S.

Applied Economics, cilt.40, sa.24, ss.3227-3231, 2008 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 40 Sayı: 24
  • Basım Tarihi: 2008
  • Doi Numarası: 10.1080/00036840600994112
  • Dergi Adı: Applied Economics
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.3227-3231
  • Bilecik Şeyh Edebali Üniversitesi Adresli: Evet

Özet

This study examines the famous Fisher Hypothesis (FH) for Turkey. FH asserts that nominal interest rates adjust on a one-to-one basis to expected changes in inflation rates. Using the Johansen cointegration method for the Turkish monthly interest rate and inflation rate data, we find that it is possible to determine the long-run relationship - but not the one-to-one basis-between nominal interest rates and inflation. Our findings suggest that full FH does not hold but there is a very powerfull Fisher effect in the case of Turkey from 1990 to 2003.