Government intervention through informed trading in financial markets
نویسندگان
چکیده
We develop a theoretical model of government intervention in which with private information trades strategically other market participants to achieve its policy goal stabilizing asset prices. When the has precise and prioritizes goal, both informed insider engage reversed trading strategies, but they trade against each other. Government can improve liquidity price efficiency, effectiveness depends crucially on quality possessed by government.
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ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 2022
ISSN: ['1879-1743', '0165-1889']
DOI: https://doi.org/10.1016/j.jedc.2022.104379