Author/Creator

Mark Carlson

Publisher

Federal Reserve System: Board of Governors: Division of Monetary Affairs

Media Date

11-1-2006

Media Type

Document

Content Type

Research Paper

Country/Region

United States

Language

English

Crisis

United States Stock Market Crash (1987)

Intervention

Market Liquidity Program

Additional Information

Finance and Economics Discussion Series, Divisions of Research & Statistics and Monetary Affairs, Federal Reserve Board, Washington, D.C.No 2007-13 Abstract The 1987 stock market crash was a major systemic shock. Not only did the prices of many financial assets tumble, but market functioning was severely impaired. This paper reviews the events surrounding the crash and discusses the response of the Federal Reserve, which responded in a number of ways to support the operation of financial markets, including the provision of liquidity, in a highly visible fashion.

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