The Fisher equation:  ∗  In its simplest form, Neo‐Fisherianism argues that the real interest rate ( ∗ is determined by real factors independent of monetary policy in the long‐run, and hence a permanent rise in the nominal interest rate must be followed by a corresponding increase in inflation in the long‐run,. It is a long‐ term view that inverts the original equation.
By making use of views exchanged with you, the Bank, through bringing Japan’s economy out of deflation that has lasted for nearly 15 years while maintaining the stability of the financial system, will contribute to sustainable growth of the global economy. I would like to thank you very much for your kind attention. BIS central bankers’ speeches  3