To the extent that these authors have been able to determine, existing literature on the Fisher Effect has only attempted to vary methodological approaches to test for the existence and validity of the Fisher hypothesis. It is the objective of this paper to expand on the literature by determining the degree of influence of money supply changes on the validity and existence of the Fisher Effect. The study examines interest rates and money supply quantities in Botswana from 1989 to 2013 and uses the Johansen Cointegration test to determine the strength of the relationships. The results indicate that there is no long run relationship between money supply, inflation, as well as the Fisher Effect. Subsequently, the study recommends potential areas of research which should be explored to verify further money supply volatility effects on the Fisher Effect.

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