Alangar, Sadhana; Hein, Scott - In: Applied Financial Economics 9 (1999) 2, pp. 209-214
This paper reconsiders the empirical work of Tanzi which examines the link between nominal interest rates and expected inflation. Tanzi did not undertake a direct test of the Darby relationship, as a result of a specification flaw. This paper provides evidence correcting for this flaw. It still...