The adjustment of nominal interest rates in Mexico: a study of the Fisher effect
AbstractEvidence is presented in favour of a Fisher effect between treasury bill interest rates and inflation in Mexico between 1978-94. The two series appear to be cointegrated and a unit proportional relationship between them would appear to exist such that treasury bills rates respond fully to inflationary shocks over a period of about 12 months. As such, monetary policy in Mexico is unlikely to have much impact on real rates of interest over the long-run.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 3 (1996)
Issue (Month): 4 ()
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- NANDWA, Boaz, 2006. "On The Fisher Effect And Inflation Dynamics In Low-Income Countries: An Assessment Of Sub-Saharan Africa Economies," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1).
- Maghyereh, A. & Al-Zoubi, H., 2006. "Does Fisher Effect Apply in Developing Countries: Evidence From a Nonlinear Cotrending Test applied to Argentina, Brazil, Malysia, Mexico, Korea and Turkey," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(2).
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