Editing Fisher effect (section)

==Alternative hypotheses==

Some contrary models assert that, for example, a rise in expected inflation would increase current real spending contingent on any nominal rate and hence increase income, limiting the rise in the nominal interest rate that would be necessary to [[LM curve|re-equilibrate money demand with money supply]] at any time. In this scenario, a rise in expected inflation <math>\pi^e</math> results in only a smaller rise in the nominal interest rate <math>i</math> and thus a decline in the real interest rate <math>r</math>. It has also been contended that the Fisher hypothesis may break down in times of both quantitative easing and financial sector recapitalisation.<ref>{{cite SSRN |title=Policy Duration Effect Under Zero Interest Rates: An Application of Wavelet Analysis|first1=Shigenori|last1=Shiratsuka|first2=Kunio|last2=Okina|date=1 February 2004 |ssrn = 521402}}</ref>