Working Paper

A brief history of the 1987 stock market crash with a discussion of the Federal Reserve response


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.

Keywords: Stock Market Crash, 1987; Stock market; Board of Governors of the Federal Reserve System (U.S.);

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Finance and Economics Discussion Series

Publication Date: 2006

Number: 2007-13