Author(s)

Hongyue Sun

Corresponding Author

Hongyue Sun

Abstract

The paper mainly focuses on the US stock market and the corresponding impacts on the US economy. Firstly, the stock market crash in 1987 and 2020 will be compared, and the potential factors as well as its aftermath––including policy reactions, financial contagion, debt level unemployment rate, and risk premium rate––will be identified and scrutinized. Secondly, the relationship between these factors and the economy will be examined, along with other related certain factors being pinpointed. Last but not least, based on the identified factors, feasible suggestions will be proposed on how to help recover the economy in the near future.

Keywords

Stock Market, Policy reaction, Financial contagion, Globalization