Strategies for Government in the Wake of 9/11 Research Paper by Ray

This paper examines the effects of terrorism on the economy. It explains that there are three reasons that make this task difficult: Several different sectors of the economy must be looked at, different economic models weigh different elements of society differently and economists have different views on what should be done to alleviate the problem.

From the paper:

"This paper looks at the effects of the terrorist attacks on some of the world's stock markets, which plunged in the first weeks after markets were reopened but have since regained most of their pre-Sept. 11 value. The lower levels of these stock markets are felt by some to reflect the lingering effects of the attacks; it is also possible that the lowered values of stock reflected on exchanges throughout the world are simply reflections of the current still-mild but prolonged recession. It is, of course, probably both: The terrorist attacks pushed teetering world economies down the slope of recession as they damaged consumer confidence sufficiently to cause a contraction in spending that has already been occurring due primarily) to rising unemployment."