The Federal Reserve underscored its commitment to providing liquidity by conducting open market operations in a high-profile manner and earlier than usual. 10 The Federal Reserve also communicated with market participants to support efforts to coordinate a market response (Greenspan, 1994). 8  A discussion of this episode is in Maisel (1973); Brimmer (1989); and Mishkin (1991).
Some analysts are suggesting we may be facing a long period of secular stagnation. On this alternative view, the economy could perform well below normal, leaving many out of work or underemployed for a long time to come. As business people, you need to understand that possibility, and how much weight to put on it.