Expectations hypothesis theories

Theories of the term structure of interest rates which include the pure expectations theory, the liquidity theory of the term structure, and the preferred habitat theory. These theories hold that each forward rate equals the expected future interest rate for the relevant period. These three theories differ, however, on whether other factors also affect forward rates, and how. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • expectations hypothesis theories — Theories of the term structure of interest rates, which include the pure expectations theory; the liquidity theory of the term structure, and the preferred habitat theory. These theories hold that each forward rate equals the expected future… …   Financial and business terms

  • Rational expectations — is an assumption used in many contemporary macroeconomic models, and also in other areas of contemporary economics and game theory and in other applications of rational choice theory. Since most macroeconomic models today study decisions over… …   Wikipedia

  • Efficient-market hypothesis — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Variability hypothesis — The variability hypothesis originated in the early nineteenth century with Johann Meckel who argued that females are more variable than males. Because he considered males to be the superior animal Meckel concluded that variation was a sign of… …   Wikipedia

  • Nobel Prizes — ▪ 2009 Introduction Prize for Peace       The 2008 Nobel Prize for Peace was awarded to Martti Ahtisaari, former president (1994–2000) of Finland, for his work over more than 30 years in settling international disputes, many involving ethnic,… …   Universalium

  • Yield curve — This article is about yield curves as used in finance. For the term s use in physics, see Yield curve (physics). Not to be confused with Yield curve spread – see Z spread. The US dollar yield curve as of February 9, 2005. The curve has a typical… …   Wikipedia

  • Confirmation bias — (also called confirmatory bias or myside bias) is a tendency for people to favor information that confirms their preconceptions or hypotheses regardless of whether the information is true.[Note 1][1] As a result, people gather evidence and recall …   Wikipedia

  • Economics — This article is about the social science. For other uses, see Economics (disambiguation). For a topical guide to this subject, see Outline of economics. Economics …   Wikipedia

  • Counseling psychology — Intervention ICD 10 PCS GZ6 ICD 9 CM 94.45 …   Wikipedia

  • biblical literature — Introduction       four bodies of written works: the Old Testament writings according to the Hebrew canon; intertestamental works, including the Old Testament Apocrypha; the New Testament writings; and the New Testament Apocrypha.       The Old… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.