{"title":"Unveiling the Neo-Fisher Effect: Evidence from Pakistan","authors":"Hafsa Hina","doi":"10.1177/09731741241243122","DOIUrl":null,"url":null,"abstract":"This study aims to examine the relationship between interest rates and inflation in Pakistan, specifically considering the Fisher effect and the non-Fisher effect. The ongoing debate regarding whether raising interest rates contributes to higher inflation rather than effectively controlling it has motivated our research. To investigate this, we utilize time-varying vector auto-regressive and Granger causality tests. Our findings reveal the significance of the neo-Fisher effect, particularly from 2015 onwards, compared to the traditional Fisher effect in Pakistan.","PeriodicalId":44040,"journal":{"name":"Journal of South Asian Development","volume":null,"pages":null},"PeriodicalIF":0.9000,"publicationDate":"2024-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of South Asian Development","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1177/09731741241243122","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"DEVELOPMENT STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
This study aims to examine the relationship between interest rates and inflation in Pakistan, specifically considering the Fisher effect and the non-Fisher effect. The ongoing debate regarding whether raising interest rates contributes to higher inflation rather than effectively controlling it has motivated our research. To investigate this, we utilize time-varying vector auto-regressive and Granger causality tests. Our findings reveal the significance of the neo-Fisher effect, particularly from 2015 onwards, compared to the traditional Fisher effect in Pakistan.
期刊介绍:
The Journal of South Asian Development (JSAD) publishes original research papers and reviews of books relating to all facets of development in South Asia. Research papers are usually between 8000 and 12000 words in length and typically combine theory with empirical analysis of historical and contemporary issues and events. All papers are peer reviewed. While the JSAD is primarily a social science journal, it considers papers from other disciplines that deal with development issues. Geographically, the JSAD"s coverage is confined to the South Asian region, which includes India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives and Afghanistan.