Terrorist attacks of Sept. 11, 2001 undoubtedly left a lasting impact on America and the world. Lives were altered forever and the way the world operates fundamentally changed.
Jeff Rosensweig, associate professor of finance at Goizueta Business School, spoke with communications staff at Emory University as part of a series describing the lasting effects of 9/11.
Sunday marks the 10th anniversary of the attacks.
“Surprisingly to many, 9/11 had a much weaker lasting effect than many would have thought,” Rosensweig said when asked about economic impacts of the attacks.
Rosensweig acknowledges a deepening recession following 9/11 but, in reality, the U.S. economy was shrinking six months before the attacks as a result of the “.com” bust.
Ultimately, according to Rosensweig, the Federal Reserve’s fears of a deepening economic decline post-9/11 led to a reduction in interest rates and a sustained recovery.
Another lasting impact, says Rosensweig, was an increase in military spending.
“Perhaps in ordinatry times that wouldn’t matter as much but, if we look at our current economic picture — where there is so much worry about [federal government deficit]… here’s a source of spending that’s much greater and will remain much greater as a direct concequence of 9/11.”
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ABOUT THE EXPERT
Jeff Rosensweig is an associate professor of International Business and Finance. He is also Director of the Global Perspectives Program. Rosensweig specializes in global strategy, global economics and international finance. Prior to joining Emory in January 1988, he was Senior International Economist at the Federal Reserve Bank of Atlanta. Jeff has also taught at M.I.T. and in the economics department and the School of Management at Yale University. He also writes a regular column for the Atlanta Journal-Constitution.