expectations hypothesis

expectations hypothesis definition - business

expectations hypothesis

The explanation that the slope of the yield curve is attributable to expectations of changes in short-term interest rates. The yield curve relates bond yields and maturity lengths.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.