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.

If you'd like to learn more about the expectations hypothesis, please visit: www.initialreturn.com/

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

Enjoying our content?

Click the link below to subscribe to our channel:
   / @initialreturn  

You can also follow us on X:
x.com/initial_return

And, visit our website for free courses, tutorials, and more:
www.initialreturn.com/

#tutorial #investing #finance