Fisher equation: Revision history


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  • curprev 15:0615:06, 10 September 2023 69.6.101.149 talk 4,720 bytes −136 Reworded the formal bit since it didn't make sense and was self contradictory. (1+r) = (1+i)/(1+pi) is the exact expression since the real interest rate is the growth rate in purchasing power. The approximation can be see by foiling out (1+r)(1+pi) = 1+r+pi + r x pi = 1+i. The approximation ignores the r x pi term since it is small for typical real world values of the rates. undo Tag: references removed

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