Lanne, Markku - Suomen Pankki - 2002
According to several empirical studies, US inflation and nominal interest rates, as well as the real interest rate, can … persistence. The real interest rate is devoid of this component, indicating one-for-one movement of the nominal interest rate and … inflation in the long run and thus stationarity of the real interest rate. Comparisons with a linear vector autoregressive model …