Fisher Effect: Difference between revisions
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imported>Administrator (CSV import) |
imported>Doug Williamson (Link with Inflation page.) |
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== See also == | == See also == | ||
* [[Four way equivalence model]] | * [[Four way equivalence model]] | ||
* [[Inflation]] | |||
* [[International Fisher Effect]] | * [[International Fisher Effect]] | ||
* [[Nominal rate]] | * [[Nominal rate]] | ||
* [[Real rate]] | * [[Real rate]] | ||
Revision as of 21:55, 23 March 2016
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.
