US and European stock markets staged a partial recovery on Friday after dramatic losses on Thursday wiped billions of pounds off the value of shares around the world.
The financial markets were boosted by a surprise decision by the US central bank to cut the interest rate at which it lends money to commercial banks.
The 0.5% cut was designed to increase the flow of money in the US financial system and boosted share prices around the world.
In London, the FTSE 100 index of leading shares finished the day up 3.5% or 205.3 points at 6,064.2.
When markets closed in New York, the Dow Jones ended up 1.82% or 233.3 points at 13,079.1.
Despite the gains, both indexes remain well below the levels reached earlier in the summer.
What does the volatility mean for our pensions, investments and mortgages?
In a special edition of Money Box, Paul Lewis discussed the causes of this turbulence, where the markets might go next, and what we can do to protect our finances with a panel of expert guests.
Paul Lewis was joined by:
Bob Brusca, chief economist, Fact and Opinion Economics
Rosemary Radcliffe, independent economist
Justin Urquhart Stewart, managing director, Seven Investment Management
Bob Parker, vice chairman of Credit Suisse Asset Management.
David Kauders, Kauders Portfolio Management
Marcus Hurd, senior consultant and actuary at Aon Consulting
Joanne Segars, chief executive of the National Association of Pension Funds
BBC Radio 4's Money Box Special was broadcast on Saturday, 18 August 2007 at 1204 BST.
The scheduled edition of Inside Money: A Quick Fix? was broadcast on Monday 20 August at 15.02 BST.