... in-terest rates, and exchange rates with endogenously segmented markets. Journalof Political Economy.Alvarez, Fernando; Lucas, Robert E., Jr.; and Weber, Warren E. 2001. Interest rates and inflation. ... lowerboth money growth and nominal interest rates. Empirical EvidenceWe start our study by examining the empirical evidencerelevant to the relationship between money and interest rates. We begin with ... obtained by computing, for each country in each of the two interest ratesamples, money growth rates and average nominal interest rates during nonoverlapping five-year periods beginning in1964 and...