The day after the U.S. stock market crash of October 19, 1987,Federal Reserve Board Chairman Alan Greenspan issued the followingstatement: “The Federal Reserve, consistent with itsresponsibilities as the nation’s central bank, affirmed today itsreadiness to serve as a source of liquidity to support the economicand financial system.”  What school of thought may promptthat statement?  That is, which school (or schools) has arole for active monetary policy?
