Long Run Impact
The impact that 9/11 will have on the economy in the long run is a very difficult problem to solve. There are some cases that make it impossible to know. The long run effect is theoretical at this point. There are aspects that help to show that 9/11 will not have as large an effect as one would think. Because the Government and the Federal Reserve took immediate action to alleviate the potentially disastrous economic effect, the problems were limited to the short run. The problems that we are seeing after 9/11 started before the attacks and were not necessarily caused by the attacks. The country was already in a recession and that makes it difficult to measure how much the attacks changed the outcome of the already draining economy.
