This paper proposes that there is a dynamic relationship between interest and inflation rates that are jointly determined due to the dual existence of Fisher and Wicksell processes. The Fisher process is the positive relationship between inflation and interest rates wherein causality runs from...

This paper extends previous research on how monetary policy rates impact interest and inflation rates. We develop and apply a system model comprised of joint Fisher-Wicksell effects augmented with the federal funds rate. Theoretical relationships between ex ante and ex post coefficients are...