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Journals / Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi / 2006 / Cilt: 24 - Sayı: 2

The Long-Run Relationship Between the Inflation Rate and Nominal Interest Rate in Turkey: The Fisher Effect

Türkiye'de Enflasyon ve Nominal Faiz Oranları Arasındaki Uzun Dönemli İlişki: Fisher Etkisi

Nasip BOLATOĞLU
Pages
1–15
Publication Date
2022-10-18
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

In this study the presence of the Fisher effect is investigated for Turkey under the assumption of adaptive expectations.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In economic literature there are two different views on the effects of inflation expectations on interest rates, called liquidity effect and Fisher effect.
📊
Key Findings & Data:According to the liquidity effect, an increase in inflationist expectations results as a decrease in both nominal and real interest rates.
💡
Conclusion & Impact:In this study the presence of the Fisher effect is investigated for Turkey under the assumption of adaptive expectations.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

In economic literature there are two different views on the effects of inflation expectations on interest rates, called liquidity effect and Fisher effect. According to the liquidity effect, an increase in inflationist expectations results as a decrease in both nominal and real interest rates. According to the Fisher effect, there is a one-to-one correspondence between a change in inflation expectations and nominal interest rate in the long-run which implies that monetary policy is irrelavant on the real interest rate. Therefore a test of the long run relationship between nominal interest rate and inflation rate is important on understanding the effects of the monetary policy on interest rates. In this study the presence of the Fisher effect is investigated for Turkey under the assumption of adaptive expectations.

Özet

Enflasyonist beklentilerin faiz oranları üzerindeki etkisi konusunda, likidite etkisi ve Fisher etkisi olmak üzere iki farklı görüs bulunmaktadır. Likidite etkisine göre, enflasyon beklentilerinde gerçeklesen bir artış, gerek nominal faiz oranının gerekse de reel faiz oranının düşmesine neden olacaktır. Fisher etkisine göre ise, enflasyon beklentilerindeki değişim uzun dönemde birebir olarak nominal faiz oranına yansıyacaktır. Bu da para politikasının reel faiz oranı üzerinde etkisinin olmayacagını ortaya koymaktadır. Dolayısıyla nominal faiz oranı ile enflasyon oranı arasındaki uzun dönemli ilişkinin test edilmesi para politikasının etkileri açısından büyük bir önem kazanmaktadır.Bu çalısmada uyarlanmış beklentiler varsayımı altında Türkiye için Fisher etkisinin varlıgı araştırılmaktadır.

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Cite This Article

BOLATOĞLU, N. (2022). The Long-Run Relationship Between the Inflation Rate and Nominal Interest Rate in Turkey: The Fisher Effect. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Cilt: 24 - Sayı: 2, 1–15. https://ajindex.com/articles/533254

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