expectations hypothesis
Word Rarity
Rare
Frequency: Zipf frequency 3.77 in modern English
44
Scrabble Score
22
Letters
8
Syllables
12
Unique Chars
Meaning
noun
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.