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    Around the world with Irving Fisher

    Gylfason, T. and Tómasson, H. and Zoega, Gylfi (2016) Around the world with Irving Fisher. The North American Journal of Economics and Finance 36 , pp. 232-243. ISSN 1062-9408.

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    Abstract

    This paper aims to show why Irving Fisher's own data on interest rates and inflation in New York, London, Paris, Berlin, Calcutta, and Tokyo during 1825–1927 suggested to him that nominal interest rates adjusted neither quickly nor fully to changes in inflation, not even in the long run. In Fisher's data, interest rates evolve less rapidly than inflation and change less than inflation over time. Even so, the “Fisher effect” is commonly defined as a point-for-point effect of inflation on nominal interest rates rather than what Fisher actually found: a persistent negative effect of increased inflation on real interest rates.

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): Fisher effect, Inflation, Interest rates
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Research Centre: Applied Macroeconomics, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 02 Mar 2016 10:55
    Last Modified: 27 Jul 2019 05:04
    URI: http://eprints.bbk.ac.uk/id/eprint/14566

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