Trend breaks and the fisher hypothesis in canada and the United States

C-Tier
Journal: Applied Economics
Year: 2004
Volume: 36
Issue: 17
Pages: 1907-1913

Authors (2)

Frank Atkins Milanda Chan (not in RePEc)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using the sequential estimation methodology developed by Banerjee, Lumsdaine and Stock (Journal of Business and Economic Statistics, 10(3), 271-87, 1992), Zivot and Andrews (Journal of Business and Economic Statistics, 10(3), 251-70, 1992) and extended by Lumsdaine and Papell (Review of Economics and Statistics, 79(2), 212-18, 1997), empirical evidence is found consistent with the hypothesis that the 90-day Treasury Bill rate and the inflation rate in Canada and the US are stationary around a deterministic trend with two breaks. When the breaks are filtered out, the data is consistent with partial long-run adjustment of the nominal interest rate to an inflation shock, but not of the size predicted by the Fisher Effect.

Technical Details

RePEc Handle
repec:taf:applec:v:36:y:2004:i:17:p:1907-1913
Journal Field
General
Author Count
2
Added to Database
2026-01-24