The adjustment of nominal interest rates in Mexico: a study of the Fisher effect

Evidence is presented in favour of a Fisher effect between treasury bill interest rates and inflation in Mexico between 1978-94. The two series appear to be cointegrated and a unit proportional relationship between them would appear to exist such that treasury bills rates respond fully to inflationary shocks over a period of about 12 months. As such, monetary policy in Mexico is unlikely to have much impact on real rates of interest over the long-run.

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Year of publication:	1996
Authors:	Thornton, John
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 3.1996, 4, p. 255-257
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009202999