TY  - JOUR
AU  - Mishkin,Frederic S.
AU  - White,Eugene N.
TI  - U.S. Stock Market Crashes and Their Aftermath: Implications for Monetary Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8992
PY  - 2002
Y2  - June 2002
UR  - http://www.nber.org/papers/w8992
L1  - http://www.nber.org/papers/w8992.pdf
N1  - Author contact info:
Frederic S. Mishkin
Columbia University
Graduate School of Business
Uris Hall 817
3022 Broadway
New York, NY 10027
Tel: 212-854-3488
Fax: 212/662-8474
E-Mail: fsm3@columbia.edu

Eugene N. White
Department of Economics
Rutgers University
75 Hamilton Street
New Brunswick, NJ 08901-1248
Tel: 732-932-7363
Fax: 732/932-7416
E-Mail: white@economics.rutgers.edu
AB  - 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.
ER  -