On This PageVol. 14, No. 5

Circuit breakers
Last Updated: 09/03/90
Press reports describing the markets' encounter with circuit breakers on July 23, 1990, regarded them as successful. Their apparent criterion for success is the fact that the Dow Jones Industrial Average rose 60 points after encountering the circuit breaker. The experience from other markets suggests that circuit breakers do not usually produce dramatic price reversals. But, they do have effects. This article examines these effects.