According to the International Fisher effect, if U.S. investors expect a 0.06 rate of domestic inflation over one year,
Posted: Wed Apr 06, 2022 9:08 am
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:
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: