An Examination of Fisher Hypothesis for MINT Countries: Threshold Adl Cointegration Test Approach

The relationship between interest rates and inflation is among the interesting topics of the economy. In this study, the relationship between the nominal interest rate and the expected inflation for MINT countries was examined in the context of the Fisher hypothesis. Monthly data from 1990 to 2017 were used in the study. Analyses were performed with threshold autoregressive distributed lag (ADL) cointegration test, which is from the current issues of the nonlinear time series. According to the results obtained, it is determined that there is a threshold cointegration relation between the nominal interest rate and the expected inflation, that is, the Fisher hypothesis is valid for MINT countries