ABSTRACT
A number of useful general lessons can be drawn from this work. The first relates to the methodology used throughout. This has to do with modelling of the short-run versus the long-run aspects of the various relationships, be that the Fisher hypothesis, the equality of the interest rates across the countries or the effects of budget deficits and other variables. Careful modelling to capture this distinction has been shown to be of considerable importance in shedding light on the relevance of the alternate paradigms relating to the effects of budget deficits and the Fisher hypothesis, to take just two examples.
