The Fisher effect shows that in order to cope with changes in the money supply, nominal interest rates and changes in long-term inflation rates change simultaneously. For example, if monetary policy causes inflation to rise by 5 percentage points, the nominal interest rate in the economy will eventually increase by 5 percentage points. It is important to remember that the Fisher effect is a long-standing phenomenon that may not exist in the short term. In other words, nominal interest rates do not rise immediately when inflation changes, mainly because some loans have fixed nominal interest rates that are set according to expected inflation levels. If there is unexpected inflation, the real interest rate will fall in the short term because the nominal interest rate is fixed to some extent. However, over time, nominal interest rates will adjust to accommodate new inflation expectations. In order to understand the Fisher effect, it is important to understand the concepts of nominal interest rates and real interest rates. This is because the Fisher effect indicates that the real interest rate is equal to the nominal interest rate minus the expected inflation rate. In this case, the real interest rate decreases as inflation increases, unless the nominal interest rate increases at the same rate as inflation. Technically, the Fisher effect suggests that nominal interest rates adapt to changes in expected inflation.