The international Fisher effect states that nominal interest rates should be equal in all countries.

Name: The international Fisher effect states that nominal interest rates should be equal in all countries.
Brand: Quizplus
Rating: 4.8 (63 reviews)

Question

Quizplus · Accepted Answer

The international Fisher effect states that the real interest rates should be equal across countries, not the nominal interest rates. The nominal interest rates include the expected inflation rate, which can differ among countries, leading to differences in nominal interest rates.

The International Fisher Effect States That Nominal Interest Rates Should