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The stock market crash of 1987 sent shock waves through the world's financial markets. Stock exchanges in New York, Chicago, London, Tokyo, Frankfurt, and a host of other cities suffered major declines. In response, credit markets, commodity markets, and foreign exchange markets registered sharp swings. Not since the Great Depression had the world seen such turmoil in financial markets. But, dramatic as it was, the crash of 1987 was not the first hint that something was amiss. For several years, there had been a perception that financial market volatility was rising. The crash only served to bolster that perception. In an effort to learn more about the volatility of markets, the Federal Reserve Bank of Kansas City sponsored a symposium titled "Financial Market Volatility, " held at Jackson Hole, Wyoming, August 1719, 1988. The symposium brought together distinguished academics, industry representatives, and policymakers. Three basic questions were posed. First, what are the sources of financial market volatility? Second, what impact does it have on domestic and international economies? And third, what public policies should be adopted in response? The view of most of the participants at the symposium was that too little is known about the causes and consequences of financial market volatility to have much confidence in any particular policy response. This article summarizes the papers and commentary presented at