Black Monday in New York, Blue Tuesday in Tokyo: The October 1987 Crash in Japan

  title={Black Monday in New York, Blue Tuesday in Tokyo: The October 1987 Crash in Japan},
  author={Ulrike Schaede},
  journal={California Management Review},
  pages={39 - 57}
  • Ulrike Schaede
  • Published 1 January 1991
  • Economics
  • California Management Review
This article summarizes the events around the October 19, 1987, Japanese stock market decline. Although Tokyo suffered a "crash," it did not experience the same "panic" as New York, primarily because Tokyo had a more consistent institutional and regulatory structure and could rely on more patient investors. Tokyo can, with certain limitations, be taken as an example of how the "Brady Report" proposals would work in practice. Since Tokyo suffered a crash, if the Brady proposals are designed to… 
8 Citations

Figures from this paper

Initial Margin Requirements, Volatility, and the Individual Investor: Insights from Japan
Initial margin requirements represent: (1) a cost impediment to the wealth constrained investor and (2) a potential way of mitigating excessive volatility. However, prior empirical research finds
Global equity market interdependence: Tokyo versus Wall Street
Enquires into the link between the Tokyo and New York equity markets. Finds that the link between the two markets strengthens at some times and weakens at others. Staggering business cycles and the
Excess volatility pursuit in autoregressive GARCH model based panel data analysis at country level: BRICS context
PurposeThis particular study examined the government bond price variations in order to determine the presence of excess volatility both at country and panel group level of BRICS countries
Knowledge and the Multinational Enterprise
The emerging knowledge-based view of the firm has revitalised interest in the theory of the firm. Conventional wisdom concerning the existence of the firm has centred around the Coase/Williamson view
The rural growth trifecta: outdoor amenities, creative class and entrepreneurial context
Recent work challenges the notion that attracting creative workers to a place is sufficient for generating local economic growth. In this article, we examine the problem of sustaining robust growth
The Movement of Senior Staff and Their Competencies Between Enterprises in a High Technology Cluster
  • B. Thomas
  • Economics
    Innovation and Social Capital in Organizational Ecosystems
  • 2019
The purpose of this chapter is to investigate the movement of senior staff and their competencies between enterprises in a high technology cluster (HTC). An analysis has been undertaken of the


Improving the Performance of the Stock Market
To develop improvements in the stock market mechanism which would help prevent another "market break," it is important to understand the structure of the mechanism for stock market trading. Market
What Does It Take to Win the Trading Game
A mixing valve controlled with one operating lever and comprising a first fixed ceramic plate with inlet openings communicating with inlet pipes for cold and hot water respectively and with a
Computer-Assisted Order Routing System; the system does not change the trading rules
    There is no size priority; smaller orders will be filled first if they come in first
      Big 4" are Nomura, Daiwa, Nikko, and Yamaichi Securities; their share of total trading volume at the TSE was more than 50% in the 1980s. 14. The fiscal year in Japan runs from April I through
      • Those referred to as the
      With a similar legal background, the Toronto Stock Exchange introduced stock futures on a basket of 10 stocks (100 shares each) in 1983
      • September 1988, stock index futures were introduced on the TOPIX in Tokyo, and on the Nikkei 225 Average Index in Osaka. For details, see Ulrike Schaede, Der neue japanische Kapitalmarkt-Finanzfutures in Japan
      • 1990
      Japanese blue-chips (by way of physical delivery) that may not have been available on the market otherwise. The rate of physical delivery was very high: 1.19% for the
        Forty-nine of the basket stocks trade in round lots of 1000 shares (face value: ¥ 50), while one, Kansai Electric Power (face value: ¥ 500) trades in units of 100 shares
          Haraf, "Lessons of the Stock Market Crash: What We Have Learned about Securities Markets and Their Regulations,
          • The AEI Economist (May
          • 1988