This paper uses recent developments in the theory of nonstationary regressors to investigate empirical relationships previously taken to support the Gibson paradox, using quarterly data over the 1957:1 - 1994:4 period on nominal interest rates and prices for eight European Union countries -...

This paper uses recent developments in the theory of nonstationary regressors to investigate empirical relationships previously taken to support the Gibson paradox, using quarterly data over the 1957:1-1994:4 period on nominal interest rates and prices for eight European Union...