Neo-Fisher Effect: The neo-Fisher effect is a macroeconomic theory that suggests a permanent increase in the nominal interest rate leads to a transitory but persistent increase in inflation. This differs from the traditional Fisher effect, which assumes a one-to-one long-run relationship between nominal interest rates and inflation. See also Interest rates, Inflation, Macroeconomics._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. |