TITLE:
The Policy Role in the Stock Markets
AUTHORS:
Moawia Alghalith, Esha Ramlogan, Martin Franklin
KEYWORDS:
Portfolio; Stock; Risk-Free Interest Rate; Policy
JOURNAL NAME:
Theoretical Economics Letters,
Vol.2 No.2,
May
24,
2012
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.