Fisher Effect: Difference between revisions

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== See also ==
== See also ==
* [[Carry trade]]
* [[Expectations theory]]
* [[Fisher Effect]]
* [[Four way equivalence model]]
* [[Four way equivalence model]]
* [[Inflation]]
* [[Inflation]]
* [[Interest rate parity]]
* [[International Fisher Effect]]
* [[International Fisher Effect]]
* [[Nominal rate]]
* [[Nominal rate]]
* [[Purchasing power parity]]
* [[Real rate]]
* [[Real rate]]

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.


See also