Although time subscripts are sometimes omitted, the intuition behind the Fisher equation is the relationship between nominal and real interest rates, through inflation, and the percentage change in the price level between two time periods. So assume someone buys a $1 bond in period while the interest rate is . If redeemed in period , the buyer will receive dollars. However, if the inflation rate at is anticipated to be , then the present value of the proceeds from the bond is , which is equivalent to the real growth at as given by . Hence,