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A review of international Fisher’s effect focusing on inflation in Indian context for corporate decisions

Author

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  • Sharath AMBROSE

    (Institute of Management Studies and Research, Kuvempu University, India)

  • Dr. K.R. MANJUNATH

    (Institute of Management Studies and Research, Kuvempu University, India)

Abstract

Any economic phenomenon is an outcome an unidentified robust and complex model than researched ones till date. One among such phenomena is inflation. There are many economic theories for inflation by classical economists till modern economist. This study tries to ease out the corporate decision by finding the causal relationship between inflation and macroeconomic variables. The basis of selecting the predictor variables is on a renowned theory called International Fishers Effect. Theory believes that disparity in the interest rates of two countries is adjusted by exchange rate of the currencies. Thus study intendeds to find the causal relationship of selected variables with inflation to make corporate decisions.

Suggested Citation

  • Sharath AMBROSE & Dr. K.R. MANJUNATH, 2020. "A review of international Fisher’s effect focusing on inflation in Indian context for corporate decisions," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(622), S), pages 137-146, Spring.
    • Handle: RePEc:agr:journl:v:xxvii:y:2020:i:1(622):p:137-146
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    References listed on IDEAS

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