Impact of quantitative easing on the long-term investment values

Krouglov, Alexei (2019): Impact of quantitative easing on the long-term investment values.

Abstract

Presented here are simplified mathematical models for evaluation of the long-term investment values. Three scenarios were considered in a framework of the single product economy. The first scenario assesses an impact of capital investments (accrued on the product market with a constant acceleration) on an equity price on the equity market. The second scenario assesses impact of both capital investments (accrued on the product market with a constant acceleration) and quantitative easing (accrued on the equity market with a constant acceleration) on an equity price on the equity market. The third scenario assesses impact of both capital investments (accrued on the product market with a constant acceleration) and quantitative tightening (accrued on the equity market with a constant acceleration) on an equity price on the equity market.

• Item Type: MPRA Paper
• Language: English
• Keywords: Equity price; quantitative easing; mathematical models
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy

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Krouglov, Alexei (2019). Simplified Mathematical Model of Long-Term Investment Values. Available at SSRN: https://ssrn.com/abstract=3392528 or http://dx.doi.org/10.2139/ssrn.3392528.

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