INVESTIGATION OF THE RELATIONSHIP BETWEEN INFLATION AND INTEREST RATE IN G-7 COUNTRIES: FISHER EFFECT

In this study, we tested that validity of Fisher Hypothesis, which claims there is a long run relationship between nominal interest rates and inflation rates, for G-7 over the period 2002:01-2017:12 by using dynamic panel data analysis. At the result, there is no Fisher effect for G-7 countries in this period