Thorbecke, Willem - In: Eastern Economic Journal 20 (1994) 1, pp. 97-106
News of enormous trade deficits began affecting asset prices in the mid-1980s. Some have suggested that trade deficit … news contributed to the October 1987 stock market crash. This argument would be more compelling if the trade deficit were a … source of systematic risk to asset prices, since then trade deficit news could have contributed to the increased perception …