THE FISHER EFFECT THEORY EXPLAINED DEFINITION

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The Fisher theory describes the long-term relationship between inflation and interest rates.The theory proposes, that nominal interest rate in a country (n) is equal to real interest rate(r) plus inflation (i). And if we turn the sides, the real interest rate (r) is equal to nominal interest rate (n) minus expected inflation rate(i).. • https://tiduko.com/fisher-effect/

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