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Fisher effect |
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Fisher EffectThe theory that a change in the expected rate of inflation will lead to an equal change in the nominal interest rate, thus keeping the real interest rate unchanged. Due to Fisher (1930).Fisher effectA theory that nominal interest rates in two or more countries should be equal to the required real rate of return to investors plus compensation for the expected amount of inflation in each country.Fisher effect Similar MatchesInternational Fisher effectInternational Fisher effectStates that the interest rate differential between two countries should be an unbiased predictor of the future change in the spot rate. Bottom fisherBottom fisherAn investor seeking stocks that have fallen to prices at or near their bottom, which he or she believes will trend up in the future. International Fisher relationshipInternational Fisher relationshipTheory that nominal interest rates and inflation rates in different countries are connected. The Fisher equation says the nominal interest rate is the product of one plus the real interest rate times one plus the expected rate of inflation. |
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