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The Policy Role in the Stock Markets
Economics Department, University of the West Indies, St. Augustine, USA
Economics Department, University of the West Indies, St. Augustine, USA
Economics Department, University of the West Indies, St. Augustine, USA
- 1 Economics Department, University of the West Indies, St. Augustine, USA
- 2 Economics Department, University of the West Indies, St. Augustine, USA
- 3 Economics Department, University of the West Indies, St. Augustine, USA
Theoretical Economics Letters·Volume 02 (2012)·Pages 230–231·Published 23 May 2012·DOI10.4236/tel.2012.22042
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Abstract
This note is an attempt to model the role of the policymaker in stabilizing the stock markets. In doing so, we present an elasticity formula that links the risk-free interest rate to the value of the stock index.
KeywordsPortfolioStockRisk-Free Interest RatePolicy
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