Munich Personal RePEc Archive

Does Fisher hypothesis hold for the East Asian Economies? an application of panel unit root tests

Ling, Tai-Hu and Venus, Khim-Sen Liew and Syed Khalid Wafa, Syed Azizi Wafa (2008): Does Fisher hypothesis hold for the East Asian Economies? an application of panel unit root tests. Forthcoming in: Comparative Economic Studies

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Abstract

This study provides evidence supportive of Fisher hypothesis in East Asian economies using panel unit root tests, which allow for the consideration of cross-country interdependence of real interest rates in the estimation. One important implication of our finding is that monetary policy will be more effective in influencing long-term interest rates and long-run macroeconomic stability in these East Asian economies with regional collaboration.

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