Fisher effect (费雪效应 fèi xuě xiàoyìng) is a discovery by the famous economist Fisher to reveal the relationship between expected inflation rate and nominal interest rate. It points out that when expected inflation rate rises, real interest rate will also rise. More specifically, real interest rate equals the nominal interest rate minus the expected inflation rate.
- 费雪 (fèi xuě) is the transliteration of the name of economist Irving Fisher.
- 效应 (xiàoyìng) as in snowball effect (滚雪球效应 gǔnxuěqiú xiàoyìng) or greenhouse effect (温室效应 wēnshì xiàoyìng).
Also see: Fisher equation.» Add a new term or correction