• Corpus ID: 117753026

Possible mathematical formulation of liquidity preference theory

  title={Possible mathematical formulation of liquidity preference theory},
  author={Alexander Morozovsky},
  journal={arXiv: General Physics},
  • A. Morozovsky
  • Published 4 October 1999
  • Economics
  • arXiv: General Physics
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 risk-neutral models. 

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