Exchange Crises
Exchange crises are a kind of reaction of the securities market on the excessive “swelling” of fictitious capital. One such crisis occurred in October 1987, when stock prices fell sharply on the stock markets of the capitalist countries. Thus, in comparison with the maximum level of August 25,1987, in October 19, 1987, they fell on the New York Stock Exchange at 36%, Tokyo – more than 20%, the Paris and London markets – at 35-40%, while the stock exchanges in Frankfurt-am-Main, Sydney and Hong Kong – even at 45-50%. Thus, the crisis was one of the strongest in the history of stock market crises. It turned out on “classical terms”, i.e. it occurred at the height of the economic recovery and lead to a reduction in fictitious capital, for example of U.S. corporations, at 550 billion dollars.