Expectations Hypothesis Theories

Expectations Hypothesis Theories

Theories pertaining to the term structure of rates of interest that include pure expectations theory, preferred habitat theory and liquidity theory. These theories state that each forward rate is equal to the future interest rate expected for the specified/ relevant period. The theories hold different views on how and if forward rates are also affected by other factors

Related posts:

1. Biased Expectations Theories
2. Expectations Theory of Forward Exchange Rates
3. Pure Expectations Theory
4. Local Expectations Theory
5. Return-to-Maturity Expectations