User:Ganazodo

Irving Fisher was born on 27 February 1867 in Saugerties, New York. Fisher is one of the most famous economist America has produced. He studied mathematics and physics at Yale University. Fisher's stood apart from other economists due to his dedication to the method and his skill in using it, which justifies calling him America's first mathematical economist was one of the pioneering works during the time period. It illustrates the utility-maximizing conditions of general equilibrium theory that he had analyzed. Following that, He published three other books. The Nature of Capital and Income (1906), The Rate of Interest (1907), and The Theory of Interest (1930). He used a mathematical elaboration to determine the role of money in the economy, and came up with a quantity equation MV=PY. Where M is the quantity of money, P is the price level, Y is the real value of the national product, and V is the velocity of money. Following that, Fisher became the first economist to clearly and consequently distinguish between the real and nominal interest rates|publisher=Princeton University Press |isbn=978-0-691-14842-7}}. He defined real interest rate r is as follows: r = [(1 + i) / (1 + π)] – 1. Where i is the nominal interest rate and the inflation π is the growth rate of the consumer prices index. He was a successful multimillionaire up until the stock market crash in 1929. He argued that the market crashed due to it being undervalued than overvalued.