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Macro by Mark

Global Economic Data, Empirical Models, and Macro Theory
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Public data from government agencies and multilateral statistical releases, anchored in official sources

© 2026 Mark Jayson Nation

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Theory-Based Models

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Fisher Equation
Model

The Fisher equation decomposes the nominal interest rate into the real interest rate plus expected inflation: i = r + pi_e. It is the bridge between monetary conditions and real borrowing costs.

How do inflation expectations translate into observable nominal interest rates?

Composition

iii
Nominal interest rate

The observed market interest rate, combining real ...

rrr
Real interest rate

The return on lending after stripping out expected...

πeπᵉπe
Expected inflation

The rate at which agents expect the price level to...

GraphProofCompare

Short Run Equilibrium

Nominal rate

4.80

Real rate

2.00

Expected inflation

2.50