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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.

KEYWORDS

Portfolio; Stock; Risk-Free Interest Rate; Policy

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.





Author: Moawia Alghalith, Esha Ramlogan, Martin Franklin

Source: http://www.scirp.org/



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