Caporale, Guglielmo Maria; Williams, Geoffrey - In: Zagreb International Review of Economics and Business 3 (2000) 2, pp. 39-61
This paper examines interest rate linkages in the G7 economies by testing for cointegration and employing the causality testing method for unstable systems recently introduced by Toda and Yamamoto (1995), which results in standard asymptotics. The results show that whilst domestic macroeconomic...