This paper adopts a New Keynesian approach to analyze the relationship between nominal interest rates and prices. In this new framework, both a positive relation between interest rates and price levels (i.e., a positive Gibson effect) and a negative relation between interest rates and subsequent price changes (i.e., a negative Fama-Fisher effect) arise when money is supplied inelastically and prices are flexible. Such an economy is subject to Gibson’s Paradox, a long-standing puzzle in monetary economics, and a novel paradox identified here, a Fama-Fisher Paradox. By contrast, economies characterized by elastic money and sticky prices are not so paradoxical since nominal interest rates are positively related to subsequent inflation and ambi...
Gibson paradox remains a puzzle in the discipline of economics. Previous studies attempted to resolv...
The Fisher effect posits that nominal interest rates move one for one with inflation. This hypothesi...
This paper presents a structural monetary úamework featunng a demand function for non-monetary uses ...
This paper investigates the relationship between nominal interest rates and prices using nearly two ...
Many empirical studies have found that interest rate increases have a positive effect on the price l...
We examine the relationship between prices and interest rates for seven advanced economies in the pe...
In this study, we show how, to yield the real cost of borrowing, the price level can be combined wit...
We argue that Gibson's paradox has nothing to do with the Gold Standard per se, and it rather origin...
The mainstream in macroeconomics and economic policy establishes an inverse relationship between the...
We examine the relationship between prices and interest rates for seven advanced economies in the pe...
Fisher’s Price Expectation Effect: an explanatory approach to Gibson’s Paradox? Gibson’s parado...
* E-mail of the corresponding author: This paper investigates the relationship between expe extent t...
The literature on nominal interest rates rigidity does not fully address its macroeconomic implicati...
The Fishenan hypothesIs assert's that, If the expected real rate if interest is constant and therefo...
International audienceAccording to the quantitative theory of money, an expansion of the money suppl...
Gibson paradox remains a puzzle in the discipline of economics. Previous studies attempted to resolv...
The Fisher effect posits that nominal interest rates move one for one with inflation. This hypothesi...
This paper presents a structural monetary úamework featunng a demand function for non-monetary uses ...
This paper investigates the relationship between nominal interest rates and prices using nearly two ...
Many empirical studies have found that interest rate increases have a positive effect on the price l...
We examine the relationship between prices and interest rates for seven advanced economies in the pe...
In this study, we show how, to yield the real cost of borrowing, the price level can be combined wit...
We argue that Gibson's paradox has nothing to do with the Gold Standard per se, and it rather origin...
The mainstream in macroeconomics and economic policy establishes an inverse relationship between the...
We examine the relationship between prices and interest rates for seven advanced economies in the pe...
Fisher’s Price Expectation Effect: an explanatory approach to Gibson’s Paradox? Gibson’s parado...
* E-mail of the corresponding author: This paper investigates the relationship between expe extent t...
The literature on nominal interest rates rigidity does not fully address its macroeconomic implicati...
The Fishenan hypothesIs assert's that, If the expected real rate if interest is constant and therefo...
International audienceAccording to the quantitative theory of money, an expansion of the money suppl...
Gibson paradox remains a puzzle in the discipline of economics. Previous studies attempted to resolv...
The Fisher effect posits that nominal interest rates move one for one with inflation. This hypothesi...
This paper presents a structural monetary úamework featunng a demand function for non-monetary uses ...