BIROn - Birkbeck Institutional Research Online

    Around the world with Irving Fisher

    Gylfason, T. and Tomasson, 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.

    [img]
    Preview
    Text
    Fisher 10_gz_tg_17_nov_revised_gz_ht.pdf - Author's Accepted Manuscript
    Available under License Creative Commons Attribution Non-commercial No Derivatives.

    Download (846kB) | Preview

    Abstract

    This paper aims to show using modern econometric methods how Irving Fisher’s data on interest rates and inflation in New York, London, Paris, Berlin, Calcutta, and Tokyo from 1825 to 1927 suggest 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. The so-called Fisher hypothesis therefore refers to a theoretical result arising from the Fisher equation and forward-looking and rational expectations and not the empirical relationship found in his data.

    Metadata

    Item Type: Article
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Research Centre: Applied Macroeconomics, Birkbeck Centre for
    Depositing User: Gylfi Zoega
    Date Deposited: 05 Nov 2019 10:09
    Last Modified: 08 Nov 2019 02:13
    URI: http://eprints.bbk.ac.uk/id/eprint/22596

    Statistics

    Downloads
    Activity Overview
    26Downloads
    29Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item