According to the International Fisher effect, if U.S. investors
expect a 0.06 rate of domestic inflation over one year, and a .03
rate of inflation in European countries that use the euro, and
require a 0.04 real return on investments over one year, the
nominal interest rate on one‑year U.S. Treasury securities would
be:
According to the International Fisher effect, if U.S. investors expect a 0.06 rate of domestic inflation over one year,
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