A theory that asserts that the forward rates exclusively represent the expected future rates. In other words, the entire term structure reflects the markets expectations of futureshort-term rates. For example, an increasing slop ti the term structure implies increasing short-terminterest rates. Related: biased expectations theories

Pure expectations theory - A theory that asserts that the forward rates exclusively represent the expected future rates. In other words, the entire term structure reflects the markets expectations of future short-term rates. For example, an increasing slop ti the term structure implies increasing short-term interest rates. Related: biased expectations theories

Pure expectations theory : a theory that asserts that the forward rates exclusively represent the expected future rates. in other words, the entire term structure reflects the markets expectations of future short-term rates. for example, an increasing slop ti the term structure implies increasing short-term interest rates. related: biased expectations theories