Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79180
Authors: 
Mishkin, Frederic S.
White, Eugene N.
Year of Publication: 
2002
Series/Report no.: 
Working Papers, Department of Economics, Rutgers, The State University of New Jersey 2002,08
Abstract: 
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.
Subjects: 
Stock Market
JEL: 
E54
Document Type: 
Working Paper

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