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 TEL  Vol.2 No.2 , May 2012
The Policy Role in the Stock Markets
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.
Cite this paper: M. Alghalith, E. Ramlogan and M. Franklin, "The Policy Role in the Stock Markets," Theoretical Economics Letters, Vol. 2 No. 2, 2012, pp. 230-231. doi: 10.4236/tel.2012.22042.
References

[1]   M. Alghalith, “General Closed-Form Solutions to the Dynamic Optimization Problem in Incomplete Markets,” Applied Mathematics, Vol. 2, No. 4, 2011, pp. 433-435. doi:10.4236/am.2011.24054

[2]   S. E. Shreve and H. M. Soner, “Optimal Investment and Consumption with Transaction Costs,” The Annals of Applied Probability, Vol. 4, No. 3, 1994, pp. 609-692. doi:10.1214/aoap/1177004966

[3]   G. Yin and X. Y. Zhou, “Mean Variance Portfolio Selection under Markov Regime: Discrete Time Models and Continuous Time Limits,” Proceedings of the 15th International Symposium on Mathematical Theory of Networks and Systems, Leuven, 5-9 July 2000, pp. 1-6.

[4]   J. Cvitanic and F. Zapatero, “Introduction to the Economics and the Mathematics of Financial Markets,” MIT Press, Cambridge, 2004.

 
 
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