Given a home country and a foreign country, the international Fisher effect (IFE) suggests that:

Question

Given a home country and a foreign country, the international Fisher effect (IFE) suggests that:​

Quizplus · Accepted Answer

The International Fisher Effect (IFE) suggests that differences in nominal interest rates between two countries are indicative of expected changes in the exchange rate between those countries' currencies. It does not imply that nominal interest rates or inflation rates are the same across countries, nor does it suggest that exchange rates move in a similar direction against other currencies.

Given a Home Country and a Foreign Country, the International