01973cas a2200241 a 4500 AALejournalIMF007314 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451940824 1018-5941 BD-DhAAL BD-DhAAL Peng, Wensheng. The Fisher Hypothesis and Inflation Persistence : Evidence From Five Major Industrial Countries / Wensheng Peng. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper presents an empirical evaluation of the strength of the Fisher effect which predicts a positive relationship between the nominal interest rate and inflation in the postwar period in the five major industrial countries, utilizing recently developed time series techniques. The results suggest that the Fisher effect is stronger in France, the United Kingdom, and the United States than in Germany and Japan. It is argued that the differences in the linkage between the interest rate and the inflation rate as between the two groups of countries are reflected in the time series properties of the inflation rates, which are, in turn, partly attributable to the different extent to which monetary authorities accommodated inflationary shocks. The empirical results have a number of implications for the long-term trend in the SDR interest rate and for the financing of the Fund's operations. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1995/118 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/118/001.1995.issue-118-en.xml IMF e-Library