expectations hypothesis
expectations hypothesis · expectations hypothesises
The proposition that a long-term interest rate is determined purely by current and…The proposition that a long-term interest rate is determined purely by current and future expected short-term rates, so that the expected final value of wealth from investing in a sequence of short-term bonds equals the final value of wealth from investing in long-term bonds.
Meaning
1 sensesThe proposition that a long-term interest rate is determined purely by current and future expected short-term rates, so that the expected final value of wealth from investing in a sequence of short-term bonds equals the final value of wealth from investing in long-term bonds.
Forms
plural: expectations hypothesises| Singular | expectations hypothesis |
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regular