sentences:  The International Fisher effect is an extension of the Fisher effect hypothesized by American economist Irving Fisher.The Fisher effect states that a change in a country's expected inflation rate will result in a proportionate change in the country's interest rate
  where
  This may be arranged as follows
  When the inflation rate is low, the term formula_6 will be negligible.This suggests that the expected inflation rate is approximately equal to the difference between the nominal and real interest rates in any given country
  Let us assume that the real interest rate is equal across two countries (the US and Germany for example) due to capital mobility, such that formula_8.