Liquidity preference theory / Term structure of interest rates / Part 2

In this tutorial, we explain the liquidity preference theory, which is put forward to explain the term structure of interest rates.

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00:00 Intro
00:47 Understanding the liquidity preference theory
02:39 Scenario 1: Constant liquidity premium, constant short rates
02:39 Scenario 2: Decreasing short rates
05:05 Scenario 3: Increasing liquidity premium

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