This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

Journal of Economic Perspectives: Vol. 2 No. 3 (Summer 1988)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

JEP - All Issues


The Task Force Report: The Reasoning behind the Recommendations

Article Citation

Greenwald, Bruce C., and Jeremy Stein. 1988. "The Task Force Report: The Reasoning behind the Recommendations." Journal of Economic Perspectives, 2(3): 3-23.

DOI: 10.1257/jep.2.3.3

Abstract

This paper was prepared for the Symposium on the [October 1987] Stock Market Crash, held February 8, 1988, at Princeton University. The article provides a framework for thinking about the recommendations made by the Presidential Task Force on Market Mechanisms. Three conclusions can be drawn from the Task Force's findings: First, the proper focus of analysis of the events of the October crash should be on "market mechanisms" rather than on fundamental imbalances in the economy as a whole. Second, the instability evident in the events of October 1987 was not the inexorable limit of a steadily increasing level of day-to-day stock price volatility. Third, under the sorts of conditions that prevailed on late Monday and Tuesday, an orderly halt to trading (and subsequent orderly reopening) would have been preferable to what actually took place. We describe how the data collected by the Task Force leads us to these three broad conclusions.

Article Full-Text Access

Full-text Article (Complimentary)

Authors

Greenwald, Bruce C. (Unlisted)
Stein, Jeremy (Unlisted)

JEL Classifications

313: Capital Markets--Empirical Studies, Including Regulation

Comments

View Comments on This Article (0) | Login to post a comment


Journal of Economic Perspectives


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

JEP - All Issues

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us