This article has been translated from English to Gen Z Slang.

So, check it out: the Fisher effect is like that viral TikTok dance between interest rates and inflation rates. 💃 According to this OG named Irving Fisher, who's the mastermind behind this dope theory, the real interest rate = nominal interest rate minus the expected glow-up of inflation. ✨

Now, if the real interest rate stays chill, but inflation's on the up and up, the nominal interest rate's gotta level up too. Basically, if the central bank predicts prices are gonna skyrocket, they'll probs give that rate a little flex. 💸💪