Theory
There are three main economic theories attempting to explain how yields vary with maturity. Two of the theories are extreme positions, while the third attempts to find a middle ground between the former two.
Read more about this topic: Yield Curve
Famous quotes containing the word theory:
“Freud was a hero. He descended to the Underworld and met there stark terrors. He carried with him his theory as a Medusas head which turned these terrors to stone.”
—R.D. (Ronald David)
“Dont confuse hypothesis and theory. The former is a possible explanation; the latter, the correct one. The establishment of theory is the very purpose of science.”
—Martin H. Fischer (18791962)
“A theory of the middle class: that it is not to be determined by its financial situation but rather by its relation to government. That is, one could shade down from an actual ruling or governing class to a class hopelessly out of relation to government, thinking of govt as beyond its control, of itself as wholly controlled by govt. Somewhere in between and in gradations is the group that has the sense that govt exists for it, and shapes its consciousness accordingly.”
—Lionel Trilling (19051975)