The nominal interest rate as a predictor of inflation: a re-examination of the underlying model

$54.78 plus tax (Refund Policy)

Buy Article:

Abstract:

This paper examines the viability of using short-term interest rates to forecast inflation as implied by the Fisher hypothesis. A major problem with this approach is the implicit assumption that the real interest rate is constant and that the relationship between inflation and interest rate does not change over time. We demonstrate, using US quarterly data, that the relaxation of these assumptions produces a model with a higher degree of forecasting accuracy and efficiency.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/096031099332221

Publication date: August 1, 1999

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more