## Can Switching Between Inflationary Regimes Explain Fluctuations in Real Interest Rates?

_IMF Working Papers, October 1, 1997_

## Source details

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## Bibliographic details
- Authors: M. F. Bleaney
- Published: October 1, 1997
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451855241.001

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### Summary
- It has recently been suggested that allowing for switches between different inflationary regimes produces a much better fit for the Fisher relationship between interest rates and inflation, at least for U.S. data.
- The paper assesses the merits of the regime-switching theory as an explanation for the apparent fluctuations in real interest rates in Australia, Canada, Germany, the United Kingdom, and the United States.

### Assessment and Scope
- Geographic coverage:
  - Australia
  - Canada
  - Germany
  - United Kingdom
  - United States
- Central research question:
  - Whether switching between different inflationary regimes can explain fluctuations in real interest rates.
- Relationship considered:
  - The Fisher relationship between interest rates and inflation.

### Subject Areas and Keywords
- Subject: Financial services, Inflation, Long term interest rates, Prices, Real interest rates, Short term interest rates, Yield curve
- Keywords: debt ratio, dependent variable, high-inflation regime, Inflation, inflation rate, interest rate, interest rate data, interest rates, Long term interest rates, long-term interest rates, LR statistic, nominal interest rate, real interest rate, Real interest rates, running mean inflation, Short term interest rates, test statistics, white-noise process, WP, Yield curve, yield gap

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## Content in this bundle

- **Can Switching Between Inflationary Regimes Explain Fluctuations in Real Interest Rates? - WP/97/131**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/can-switching-between-inflationary-regimes-explain-fluctuations-in-real-interest-rates-2355_