Financial Times FT.com

Fed learns lesson from past

By Krishna Guha in Washington

Published: October 18 2007 21:37 | Last updated: October 18 2007 21:37

Policymakers learned a number of lessons on Black Monday that continue to inform the Federal Reserve and the US Treasury’s handling of financial crises to this day.

The first is that prices in liquid asset markets can change astonishingly abruptly without any new information that might justify the repricing.

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