The Policy Role in the Stock Markets


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.

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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.

Conflicts of Interest

The authors declare no conflicts of interest.


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