Biography . Irving Fisher, Is An American Economist, Who

Good Essays

Irving Fisher, is an American economist, who is regarded as an early neoclassical economist. He was born on February 27th, 1867 and past away post World War II on April 29th, 1947. All of Fishers contributions to economics were thorough mathematical and statistical equations. Fisher also concerned himself with political and social issues. As well, he dedicated a part of his life to promoting healthy living and world peace. He was also an advocate for the League of Nations, the original United Nations. Born to a Congregational mister, who taught him to believe that he must be a strong and helpful member of society. His mathematical skills allowed him to become admitted to Yale University, however after a week of starting
…show more content…
(“Irving Fisher,” 2013)

Irving Fisher lived and contributed to the study of economics during a time of both World Wars, the Great Depression and Prohibition. During these major and global issues, he became a social activist, advocating his support for Prohibition, and campaigning for the ban of tobacco. As well, during WW1, he lobbied for world peace and the supported the creation of the League of Nations. He was diagnosed with Cancer in early 1947, and past away a few months later, on April 29th.

Fisher Effect

1 + i = (1 + r)(1 + π)
I = Nominal Interest Rates
R = Real Interest Rates
Π = Inflation Rates
→ Systematically shows the relationship between Interest and Capital

Fisher is widely regarded for his theory of interest and capital. He was strongly influenced by John Rae and Eugene von Bohm-Bawerk, clarifying and combined their two theories. He first expressed the theory of capital, investment and interest rates in 1906 in a book titles, The Nature of Capital and Income as well in 1907 The Rate of Interest. His major book, the Theory of Interest was published during the Great Depression which summarized his life work on capital, credit markets and determinants of interest rates, including the rate of inflation. (“Irving Fisher,” 2013) This theory states that the real interest rate is equal to
    Get Access