U.S. Stock Market Crashes and Their Aftermath: Implications for Monetary Policy / Frederic S. Mishkin, Eugene N. White.

Format:

Book

Author/Creator:

Mishkin, Frederic S.

Contributor:

National Bureau of Economic Research.

White, Eugene N.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8992.

NBER working paper series no. w8992

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

U.S. Stock Market Crashes and Their Aftermath

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2002.

Summary:

This paper examines fifteen historical episodes of stock market crashes and their aftermath in the United States over the last one hundred years. Our basic conclusion from studying these episodes is that financial instability is the key problem facing monetary policy makers and not stock market crashes, even if they reflect the possible bursting of a bubble. With a focus on financial stability rather than the stock market, the response of central banks to stock market fluctuations is more likely to be optimal and maintain support for the independence of the central bank.

Notes:

Print version record

June 2002.