49-65

• Παλαιολόγος, Γιάννης Μ.
• Γεωργαντέλης, Σπύρος Ε.

In this paper we tested the joint hypothesis of the Fisher effect and rationality of inflation expectations in Greece during the period 1980:I - 1996:II applying cointegration technique. The basic evidence of this paper is the invalidity of the Fisher relationship as a long-run equilibrium phenomenon in the case of the Greek Economy. This means that the nominal interest rate does not follow the interest rate changes over the long-run. Inflationary movements have not been totally absorbed by nominal interest rates and as consequence the Fisher effect is not valid. This failure implies that external factors play a direct role in the determination of the domestic interest rate, something which is reasonable for an open economy, such as the Greek economy, where capital flows are not prohibited.

• Economics and Business
• Computer and information sciences

• Οικονομία
• Statistics

Περιέχει πίνακες, διαγράμματα, υποσημειώσεις και βιβλιογραφία, Paper presented in the International Conference in Quantitative Analysis in the University of Piraeus (Piraeus - Greece, 7-9 November, 1996).