Fisher Effect: Difference between revisions
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imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Classify page.) |
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* [[Carry trade]] | * [[Carry trade]] | ||
* [[Expectations theory]] | * [[Expectations theory]] | ||
* [[Four way equivalence model]] | * [[Four way equivalence model]] | ||
* [[Inflation]] | * [[Inflation]] | ||
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* [[Purchasing power parity]] | * [[Purchasing power parity]] | ||
* [[Real rate]] | * [[Real rate]] | ||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 21:38, 10 October 2020
The theory that 'real' (= excluding inflation) interest rates should be the same in different currencies.
From this theory it then follows that any observed differences in nominal interest rates (= including inflation) are explainable by differences between the inflation expectations for the two related currencies.
