why were interest rates so high in 1990
Early 1990s recession in Australia In October 1987, the international Stock Market Slump saw markets crash around the world. The crisis originated when Japan and West Germany pushed up interest rates, pressuring US rates also to rise, triggering a massive sell off of US shares. Global share prices fell an average of 25%, but Australia saw a 40% decline.[1] 17 of the 18 major OECD economies experienced a recession in the early 1990s.[2]