World War I; the average inflation rate was 3.8 percentage points higher in the second period than in the first. Yet nominal …We consider the puzzling behavior of interest rates and inflation in the United States and the United Kingdom between … consistent with rational expectations if inflation were not forecastable, and indeed univariate tests show little sign of serial …

inflation rate is -.17. The corresponding correlation for the period 1950 to 1979 is .71. Inflation evolved from essentially a … white noise process in the pre-World War I years to a highly persistent, nonstationary ARIMA process in the post-1960 period … stochastic process of inflation, rather than a change in any structural relationship between nominal rates and expectedi nflation …

fluctuations in expected inflation, is why a strong Fisher effect occurs only for certain periods but not for others. This paper … resolves this puzzle by reexamining the relationship between inflation and interest rates with modern time-series techniques …. Recognition that the level of inflation and interest rates may contain stochastic trends suggests that the apparent ability of …

This paper critically re-examines theory and evidence on the relation- ship between interest rates and inflation. It … concludes that there is no evidence that interest rates respond to inflation in the way that classical or Keynesian theories … inflation in the short or long run. During the post-war period interest rates do appear to be affected by inflation. However …

.e., positive) effect. With the baseline estimation, we find that the real interest rate has the substitution effect on private …

intratemporal relative price such as the terms of trade and possibly an intertemporal price such as the world interest rate. This … paper presents an empirical framework in which multiple commodity prices and the world interest rate transmit world … disturbances. Estimates on a panel of 138 countries over the period 1960-2015 indicate that world shocks explain on average 33 …