Therefore, the decline in inflation, together with expectations of  BIS central bankers’ speeches  1  moderation in inflation, enabled and even supported the reduction of the interest rate, which is intended to support activity and growth, both by lowering the cost of credit and by its effect on the exchange rate which mainly affects the commercial sector – the export industries and alternatives to imports.
While the 1987 crash did not have significant, real economic effects, this is not always the case with stock market crashes. Such episodes are generally accompanied by dramatic increases in uncertainty and increased demands for liquidity and safety. Some of these demands for liquidity may, in turn, reflect the fear that the crisis will spread more broadly to the economy.