NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

U.S. Stock Market Crashes and Their Aftermath: Implications for Monetary Policy

Frederic S. Mishkin, Eugene N. White

NBER Working Paper No. 8992
Issued in June 2002
NBER Program(s):   DAE   EFG   ME

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.

download in pdf format
   (458 K)

email paper

This paper is available as PDF (458 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8992

Published: Hunter, William B., George G. Kaufman and Michael Pormerleano (eds.) Asset Price Bubbles: The Implications for Monetary, Regulatory and International Policies. Cambridge MA: MIT Press, 2003.

Users who downloaded this paper also downloaded these:
Bernanke and Gertler w7559 Monetary Policy and Asset Price Volatility
Bordo and Wheelock w10704 Monetary Policy and Asset Prices: A Look Back at Past U.S. Stock Market Booms
Mishkin w8617 The Transmission Mechanism and the Role of Asset Prices in Monetary Policy
Shiller w2446 Investor Behavior in the October 1987 Stock Market Crash: Survey Evidence
Bordo, Dueker, and Wheelock w14019 Inflation, Monetary Policy and Stock Market Conditions
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us