The one-to-one relation between the inflation rate and the nominal interest rate, the fisher effect, assumes that the:

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26-02-2018
Business

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The one-to-one relation between the inflation rate and the nominal interest rate, the fisher effect, assumes that the:

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MrsTriplet MrsTriplet · Answer 1 · 2018-03-08T18:33:07+01:00

MrsTriplet MrsTriplet

08-03-2018

According to the Fisher effect, the real interest rate should remain constant. The Fisher effect was formulated by Economist Irving Fisher who studied the effects of inflation pertaining to interest rates.

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