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A Note on Fisher Hypothesis and Price Level Uncertainty
Published online by Cambridge University Press: 19 October 2009
Extract
The theory on the relationship between real and nominal interest rates is based on the well-known Fisher equation:
where: i = nominal interest rate;
r = real interest rate;
λ = percentage change in price level: P /P0 - 1 where P and P0 denote end-of-period and current levels of some aggregate price index, respectively.
- Type
- Research Article
- Information
- Journal of Financial and Quantitative Analysis , Volume 12 , Issue 3 , September 1977 , pp. 525 - 530
- Copyright
- Copyright © School of Business Administration, University of Washington 1977
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