International Fisher Effect

International Fisher Effect in the United States

International Fisher Effect in the International Business Landscape

Definition of International Fisher Effect in the context of U.S. international business and public trade policy: For any two countries, the spot exchange rate should change in an equal amount but in the opposite direction to the difference in nominal interest rates between countries.

International Fisher Effect in the International Business Landscape

Definition of International Fisher Effect in the context of U.S. international business and public trade policy: Observation that differences in nominal interest rates among countries are due to differences in their expected inflation rates.


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