<P> By the end of October, stock markets had fallen in Hong Kong (45.5%), Australia (41.8%), Spain (31%), the United Kingdom (26.45%), the United States (22.68%) and Canada (22.5%). New Zealand's market was hit especially hard, falling about 60% from its 1987 peak, and taking several years to recover . The damage to the New Zealand economy was compounded by high exchange rates and the Reserve Bank of New Zealand's refusal to loosen monetary policy in response to the crisis, in contrast to countries such as West Germany, Japan and the United States, whose banks increased short - term liquidity to forestall recession and experienced economic growth in the following 2--3 years . </P> <P> The Black Monday decline was--and currently remains--the largest one - day percentage decline in the DJIA . (Saturday, December 12, 1914, is sometimes erroneously cited as the largest one - day percentage decline of the DJIA . In reality, the ostensible decline of 24.39% was created retroactively by a redefinition of the DJIA in 1916 .) </P> <P> Following the stock market crash, a group of 33 eminent economists from various nations met in Washington, D.C. in December 1987, and collectively predicted that "the next few years could be the most troubled since the 1930s". However, the economy was barely affected and growth actually increased throughout 1987 and 1988, with the DJIA regaining its pre-crash closing high of 2,722 points in early 1989 . </P> <P> Possible causes for the decline included program trading, overvaluation, illiquidity and market psychology . </P>

How far did the stock market fall in 1987