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expectations hypothesis
English
Meaning
expectations hypothesis
meaning
What does
expectations hypothesis
mean?
expectations hypothesis
noun
—
(
economics
)
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
.
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