Ex-ante and Fisher Effect: Difference between pages
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imported>Doug Williamson (Add quote. Source: Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/ex-ante-vs-ex-post/) |
imported>Doug Williamson (Classify page.) |
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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 == | == See also == | ||
* [[ | * [[Carry trade]] | ||
* [[ | * [[Expectations theory]] | ||
* [[ | * [[Four way equivalence model]] | ||
* [[Inflation]] | |||
* [[Interest rate parity]] | |||
* [[International Fisher Effect]] | |||
* [[Nominal rate]] | |||
* [[Purchasing power parity]] | |||
* [[Real rate]] | |||
[[Category:The_business_context]] | [[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.
