International Fisher Effect (IFE)
An economic hypothesis which states that the change in the nominal forex rate between two countries can be approximately forecast by taking the difference between each country's prevailing nominal interest rates. The International Fischer effect computes a higher theoretical forecast value for the currency with the lower nominal interest rate. Also called assumption of uncovered interest parity.
Browse by Subjects
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):