HYWEL GEORGE: In a post-Covid economy, brace for a wave of inflation
Is it now possible that markets will return to their pre-1987 form, where they were left to their own devices and no-one got bailed out?
18 June 2020 - 05:00
In August 1987, Alan Greenspan was appointed chair of the US Federal Reserve. Two months later on October 19, now known as "Black Monday", the US stock market fell 22%.
Greenspan’s reaction was highly market orientated: for the first time, the Fed cut interest rates to support the equity market (the thinking being that a falling stock market would weaken the real economy)...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.