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

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 …

inflation rate is -.17. The corresponding correlation for the period 1950 to 1979 is .71. Inflation evolved from essentially a … stochastic process of inflation, rather than a change in any structural relationship between nominal rates and expectedi nflation …. I find little evidence of inflation non-neutrality in data from the gold standard period.This contradicts the conclusion …

movements are caused by inflation rate fluctuations, remaining constant the real interest rate. Finally, we analyze the Fisher …

This paper examines the implications of inflation persistence for the inverted Fisher hypothesis that nominal interest … rates do not adjust to inflation because of a high degree of substitutability between money and bonds. It is emphasized that … the substitutability between nominal assets and capital renders the hypothesis inconsistent with the data when inflation …

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 …

inflation rate is -.17. The corresponding correlation for the period 1950 to 1979 is .71. Inflation evolved from essentially a … stochastic process of inflation, rather than a change in any structural relationship between nominal rates and expectedi nflation …. I find little evidence of inflation non-neutrality in data from the gold standard period.This contradicts the conclusion …

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 …

inflation illusion. Illusionary investors mistake changes in nominal interest rates for changes in real rates, while smart … moves with expected inflation. The model also predicts a nonmonotonic relationship between the price-to-rent ratio on … developed. We document that many countries experienced a housing boom in the high-inflation 1970s and a second, stronger, boom …