The Gibson Paradox: A Cross-Country Analysis.

The purpose of this paper is to answer these questions and to test the ability of one version of Fisher's hypothesis to explain it. In the first section, data on interest rates and price levels are examined for evidence of a positive correlation of the two series. In the second section, the stability of any such relationship is examined. In the third section, a test of Fisher's hypothesis using rational expectations is outlined; a summary of the results is then presented. INTRODUCTION. [ABSTRACT FROM AUTHOR]