Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324718 
Year of Publication: 
2021
Citation: 
[Journal:] Research Journal for Applied Management (RJAM) [ISSN:] 2701-6633 [Volume:] 2 [Issue:] 1 [Year:] 2021 [Pages:] 53-67
Publisher: 
BoD – Books on Demand GmbH, Norderstedt
Abstract: 
Irving Fisher's (1930) hypothesis is a pillar in international economic theory used by Central banks and financial ministries to assess the impact of real and nominal variables that are essential for firm-level growth. This paper examines the validity of generalized Fisher's hypothesis for post-unification Germany for the time-period beginning January 1991 until March 2020 through a frequency-time domain framework using continuous wavelet analysis. We make two inferences from the empirical analysis; first, the generalized Fisher hypothesis holds perfectly well for the study period. Second, the relationship between real stock return and inflation exhibited in the post-financial crisis period is attributed to the indirect growth effects of the Germany's overall domestic product. The results provide valuable insights for firms, banks and governments.
Subjects: 
Fisher hypothesis
real stock return
inflation
wavelet analysis
post-unification
JEL: 
E43
E44
Document Type: 
Article

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