Book contents
- The Behavioral Economics of Inflation Expectations
- The Behavioral Economics of Inflation Expectations
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- 1 Patterns and Expectations
- 2 Extrapolation and Expectations
- 3 Eliciting Expectations under Laboratory Conditions
- 4 Features of the Laboratory Data
- 5 Similarity Matching and Scaling the Experimental Data
- 6 Pattern Extrapolation and Expectations Measured by Consumer Surveys
- 7 Heterogeneity and Uncertainty of Inflation Expectations
- 8 Inflation Dynamics
- 9 Explaining the Course of Interest Rates
- 10 Generalizing the Pattern-Based Approach
- 11 A Detour to Income Expectations
- 12 The Fisher Effect in Historical Times
- 13 Expectations of High Inflation
- 14 The Fisher Effect in Asian Economies
- 15 The Fisher Effect in African Economies
- 16 Estimates of Expected Inflation for Major Economies
- 17 Estimates of Expected Real Interest Rates for Major Economies
- Epilogue
- References
- Index
14 - The Fisher Effect in Asian Economies
Published online by Cambridge University Press: 24 July 2020
- The Behavioral Economics of Inflation Expectations
- The Behavioral Economics of Inflation Expectations
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- 1 Patterns and Expectations
- 2 Extrapolation and Expectations
- 3 Eliciting Expectations under Laboratory Conditions
- 4 Features of the Laboratory Data
- 5 Similarity Matching and Scaling the Experimental Data
- 6 Pattern Extrapolation and Expectations Measured by Consumer Surveys
- 7 Heterogeneity and Uncertainty of Inflation Expectations
- 8 Inflation Dynamics
- 9 Explaining the Course of Interest Rates
- 10 Generalizing the Pattern-Based Approach
- 11 A Detour to Income Expectations
- 12 The Fisher Effect in Historical Times
- 13 Expectations of High Inflation
- 14 The Fisher Effect in Asian Economies
- 15 The Fisher Effect in African Economies
- 16 Estimates of Expected Inflation for Major Economies
- 17 Estimates of Expected Real Interest Rates for Major Economies
- Epilogue
- References
- Index
Summary
The research literature has investigated the validity of the Fisher effect for a number of Asian economies. Among the countries that have been studied, Indonesia, South Korea, Malaysia, the Philippines, Singapore, and Thailand figure prominently. Overall, the evidence regarding the Fisher effect is mixed. Berument and Jelassi (2002) find no statistically significant effects of expected inflation on nominal interest rates for Korea and the Philippines. Kim et al. (2018) report statistically nonsignificant effects of expected inflation for the Philippines and Singapore and a significant effect, albeit not the strong form, for Thailand. Said and Janor (2001) find signs supporting the hypothesis for Indonesia but no evidence favoring Fisher’s proposition for South Korea, Malaysia, the Philippines, Singapore, and Thailand. Finally, Nusair (2008) documents a strong-form Fisher effect for South Korea and weak-form effects for Malaysia and Thailand. Summing up, the hypothesis under investigation has so far gained limited support for Asian countries.
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- Chapter
- Information
- The Behavioral Economics of Inflation ExpectationsMacroeconomics Meets Psychology, pp. 170 - 178Publisher: Cambridge University PressPrint publication year: 2020