Testing for the long run relationship between nominal interest rates and inflation using cointegration techniques | Synapse
April 1, 1989
Testing for the long run relationship between nominal interest rates and inflation using cointegration techniques
Key Points
The aim is to assess the long run relationship between nominal interest rates and inflation.
Utilized cointegration techniques to analyze the data.
Examined historical nominal interest rate and inflation datasets over time.
Applied econometric models to determine stability in the relationship.
Identified a significant long run relationship between nominal interest rates and inflation.
Demonstrated that fluctuations in inflation impact nominal interest rates over time.
Provided evidence supporting the use of cointegration analysis in economic studies.
Abstract
(1989). Testing for the long run relationship between nominal interest rates and inflation using cointegration techniques. Applied Economics: Vol. 21, No. 4, pp. 439-447.