MERCAN, Mehmet Hakkari Üniversitesi - İktisat Bölümü, Turkey

TESTING THE LONG-TERM RELATIONSHIP BETWEEN INFLATION AND NOMINAL INTEREST RATES UNDER FISHER HYPOTHESIS: THE CASE OF TURKEY

36760

In this study, Fisher hypothesis suggesting the existence of long-term one to one relationship between nominal interest rate and inflation rate was analysed with ARDL bound testing approach by using the data of 1992:M1-2013:M1 periods in the sample of Turkey. As a result of the analysis cointegration relationship between series was determined. It was observed that inflation rate affected the nominal interest rate statistically significantly and positively in accordance with the expectations within the framework of Fisher hypothesis. It can be expressed that the relationship between the nominal interest rate and inflation rate is not one to one and monetary policies implemented in the related period are partly effective on the real interest rate.

368

Fisher hypothesis , Cointegration Analysis , Turkey

Journal Of Economics and Administrative Sciences, Ataturk University

384