Shrestha, Keshab; Chen, Sheng-Syan; Lee, Cheng-few - In: Journal of Financial Research 25 (2002) 3, pp. 305-320
Some empirical evidence suggests that the expected real interest and expected inflation rates are negatively correlated. This hypothesis of negative correlation is sometimes known as the Mundell-Tobin hypothesis. In this article we reinvestigate this negative relation from a long-term point of...