Black Monday, 19 October 1987, and its Aftermath

This chapter focuses on the conduct of Japanese monetary policy in the runup to the collapse of the New York Stock Exchange on Monday 19 October 1987 and its aftermath. It reveals that the author as a senior OECD official argued against the prolonged maintenance of too easy monetary policy in the face of asset price inflation in Japan, while the Japanese government representatives at OECD meetings expressed the view that it could not be described as a bubble.