%0 DATA
%A Kavita, Sirichand
%A Andrew J., Vivian
%A Mark E., Wohar
%D 2015
%T Examining real interest parity: which component reverts quickest and in which regime?
%U https://repository.lboro.ac.uk/articles/Examining_real_interest_parity_which_component_reverts_quickest_and_in_which_regime_/9501779
%2 https://repository.lboro.ac.uk/ndownloader/files/17128514
%K Comovement
%K Real interest rate parity
%K Inflation differential
%K Nominal interest rate differential
%K Fisher effect
%K Gold Standard
%K Floating exchange rate
%X This article re-examines real interest parity (RIP), focusing upon which component of real interest parity drives convergence to parity. We find that it is the reversion of inflation rather than nominal interest rates which is the primary source of convergence to RIP. Nominal interest rate differentials are found to be persistent during both periods. Furthermore, we additionally find that mean reversion in the inflation differentials is faster during the Gold Standard period.