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Irving Fisher, Inflation, and the Nominal Rate of Interest

Published online by Cambridge University Press:  19 October 2009

G. Marc Choate  and
Stephen H. Archer
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Extract

The purpose of this paper is to present a more meaningful interpretation of the empirical finding of a distributed lag relationship between the nominal (market) rate of interest and the rate of inflation than that offered by Irving Fisher [8] and subsequent writers (see e.g., [2], [9], [10], [11], [15], [17]). In Part II we identify a paradox between Fisher's theory and his empirical results and examine previous explanations for the paradox. In III and IV, we offer what appears to be a more satisfactory resolution of the paradox and subject it to empirical test.

Information

Type
IX. Capital Market Theory
Information
Journal of Financial and Quantitative Analysis , Volume 10 , Issue 4 , November 1975 , pp. 675 - 685
Copyright
Copyright © School of Business Administration, University of Washington 1975

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References

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