The Fisher effect recommends that nominal interest rates differ among countries due to differences in the respective rates of inflation. According to the Fisher effect and your assessment of the long-term & short-term Eurocurrency interest rates presented, order the five countries from highest to lowest in terms of the size of the inflation premium imbedded in the nominal interest rates for year 1998.
According to the Fisher effect, the short-term and the long-term both interest rates recommend that the inflation premiums for the four countries (or zone) ordered through highest to lowest are: Great Britain, the Euro-zone, the United States and Japan.