Under what conditions is the loss of purchasing power on interest in the Fisher effect an important

Question:

Under what conditions is the loss of purchasing power on interest in the Fisher effect an important consideration?

Fisher Effect
The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates. The Fisher Effect states that the real interest rate equals the nominal interest...

Fantastic news! We've Found the answer you've been seeking!