Fisher Effect
A theory describing the long-run relationship between inflation and interest rates. Investopedia Says:
This equation tells us that, all things being equal, a rise in a country's expected inflation rate will eventually cause an equal rise in the interest rate (and vice versa). Related Terms:
Consumer Price Index - CPI
Deflation
Disinflation
Hyperinflation
International Fisher Effect - IFE
Producer Price Index - PPI
Quantity Theory Of Money
Reflation
Retail Price Index - RPI
Stagflation |