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|Title:||The fisher relationship in Nigeria|
|Keywords:||Fisher effect;Unit root tests;Fractional integration|
|Citation:||Journal of Economics and Finance, pp. 1 - 11,(2016)|
|Abstract:||This paper examines the Fisher relationship in the case of Nigeria by carrying out standard unit root tests and applying fractional integration techniques to 1-month, 3-month, 6-month and 12-month deposit rates and inflation. The evidence indicates that this relationship only holds for very short-term (1-month) interest rates, and therefore only these nominal rates are a useful predictor of the inflation rate. For other short-term rates the lack of a Fisher effect suggests that they could be used as a monetary policy tool.|
|Appears in Collections:||Dept of Economics and Finance Research Papers|
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