Crash of 1929: Difference between revisions
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==Explanations== | ==Explanations== | ||
<ref>[http://www.bportugal.pt/events/conferences/CME/mppaper.pdf Ellen McGrattan: ''The Stock Market Crash of 1929: | |||
Irving Fisher Was Right!'', Federal Reserve Bank of Minneapolis, Research Department Staff Report 294, December 2001]</ref> | |||
The historical evidence suggests that the stock market crashed because the Federal Reserve | |||
severely tightened credit to stock investors, not because stocks were overvalued. Subsequent | |||
easing of credit was coincident with a recovery in stock prices. | |||
==Contributory factors== | ==Contributory factors== | ||
Revision as of 12:43, 6 January 2009
The stock exchange crash
Explanations
The historical evidence suggests that the stock market crashed because the Federal Reserve severely tightened credit to stock investors, not because stocks were overvalued. Subsequent easing of credit was coincident with a recovery in stock prices.
Contributory factors
Consequences
References
- ↑ [http://www.bportugal.pt/events/conferences/CME/mppaper.pdf Ellen McGrattan: The Stock Market Crash of 1929: Irving Fisher Was Right!, Federal Reserve Bank of Minneapolis, Research Department Staff Report 294, December 2001]