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An Examination of Fisher Effect for Selected New EU Member States

Author

Listed:
  • Harun UCAK

    (Mugla Sitki Kocman University, Fethiye Faculty of Business, Mugla, Turkey)

  • Ilhan OZTURK

    (Cag University, Faculty of Economics and Business, 33800, Mersin, Turkey)

  • Alper ASLAN

    (Nevsehir University,Faculty of Economics and Administrative Sciences, 50300, Nevsehir, Turkey)

Abstract

The relationship between interest rates and inflation which is called Fisher effect has been investigated in both theoretical and empirical economics in vast literature. The contribution of this paper to the literature is to test the Fisher effect for the selected four transition economies that are also new EU member states. The empirical analysis is conducted by allowing for a structural break that takes place in year 2004. In this study, a case-wise bootstrap approach empirical method which developed by Hatemi-J and Hacker (2005) is used and the results support a tax adjusted Fisher effect in the presence of a structural break.

Suggested Citation

  • Harun UCAK & Ilhan OZTURK & Alper ASLAN, 2014. "An Examination of Fisher Effect for Selected New EU Member States," International Journal of Economics and Financial Issues, Econjournals, vol. 4(4), pages 956-959.
    • Handle: RePEc:eco:journ1:2014-04-21
    as

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    References listed on IDEAS

    as
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    3. Crowder, William J & Hoffman, Dennis L, 1996. "The Long-Run Relationship between Nominal Interest Rates and Inflation: The Fisher Equation Revisited," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(1), pages 102-118, February.
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    More about this item

    Keywords

    Fisher Effect; New EU Member States; Monetary Policy; Transition Economies.;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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