Circuit Breakers
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.
