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(Fisher Effect)The interest rate for Swiss Franc is i_SF = 2% and for Japanese yen is i_y = 6%. The expected inflation rate in Switzerland for the next year is 5%. According to the International Fisher Effect, the expected inflation rate in Japan for next year is 9.12 % The real interest rate in Japan next year is expected to be -2.89 or -3.12 (Keep the sign)

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