Exchange-Rate Expectations and Nominal Interest Differentials : A Test ofthe Fisher Hypothesis

Robert E. Cumby, Maurice Obstfeld

This note tests the hypothesis that nominal interest differentials between similar assets denominated in different currencies can be explained entirely by the expected change in the exchange rate over the holding period. This proposition, often called the "Fisher open" hypothesis or the hypothesis of perfect asset substitutability, has been a major component of recent theories of exchange-rate determination, and has important implications for monetary policy

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Year of publication:	August 1980
Authors:	Cumby, Robert E.
Other Persons:	Obstfeld, Maurice (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Theorie \| Theory \| Fisher-Effekt \| Fisher effect \| Wechselkurs \| Exchange rate \| Zins \| Interest rate \| Erwartungsbildung \| Expectation formation \| Inflationserwartung \| Inflation expectations \| Zinsstruktur \| Yield curve \| Schätzung \| Estimation

Extent:	1 Online-Ressource
Series:	NBER working paper series ; no. w0537
Type of publication:	Book / Working Paper
Language:	English
Notes:	Mode of access: World Wide Web System requirements: Adobe [Acrobat] Reader required for PDF files Hardcopy version available to institutional subscribers.
Other identifiers:	10.3386/w0537 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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