Macroeconomics: The Fisher Equation, Nominal and Real Interest Rates, and Inflation

In this video, Mr Tweet goes over the relationship between nominal interest rates and real interest rates. With an example, we see where the Fisher equation comes from. Additionally, Mr Tweet goes over two possible ways this can play out when there is a change to inflation depending on whether we are talking about new loans or existing loans. Fisher Equation: Nominal Interest Rate = Anticipated Real Interest Rate + Anticipated Inflation