Possible mathematical formulation of liquidity preference theory
Abstract
New mathematical formulation of liquidity preference theory is suggested. On the base of comparison between suggested model and real prices paradoxical conclusion could be derived. The whole yield curve could be described only on the base of liquidity preference theory without any consideration of riskneutral models.
 Publication:

arXiv eprints
 Pub Date:
 October 1999
 arXiv:
 arXiv:physics/9910005
 Bibcode:
 1999physics..10005M
 Keywords:

 General Physics
 EPrint:
 13 pages, 2 figures, 2 tables