PAD 540 The Economy, Global Finance, and Inequality
Evaluation of economic disparities and global finance issues.
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The Economy, Global Finance, and Inequality
PAD 540
ANH NGUYEN
3/01/2012
Dr Udoh Udom
In the aftermath of the September 11 attacks, the global economy experienced significant
disruptions, including recession, rising government debt, shifts in trade policies, and
increased security measures. Using the information provided, analyze the economic
impacts of the 9/11 attacks on both the U.S. and global economies. Discuss the short-term
and long-term consequences on trade, consumer confidence, labor markets, and economic
growth. Additionally, explore the relationship between global poverty and terrorism as
outlined in the provided references.
PAD 540
ANH NGUYEN
3/01/2012
Dr Udoh Udom
In the aftermath of the September 11 attacks, the global economy experienced significant
disruptions, including recession, rising government debt, shifts in trade policies, and
increased security measures. Using the information provided, analyze the economic
impacts of the 9/11 attacks on both the U.S. and global economies. Discuss the short-term
and long-term consequences on trade, consumer confidence, labor markets, and economic
growth. Additionally, explore the relationship between global poverty and terrorism as
outlined in the provided references.
Following the terrorist attacks on 9/11, an already weak international economy
was weakened further. The attacks occurred as the world economy was experiencing its
first synchronized global recession in a quarter-century. Global growth was 1.4% for
2001 – down considerably from 4% in 2000. As a result of stimulus monetary and fiscal
policies, particularly in the United States and China, the recession turned toward a weak
economic recovery.
Prior to 9/11, the slowdown in the U.S. economy already was being transmitted to
other economies through trade and investment channels, particularly through a sharp
decline in U.S. imports of high-technology components from Asian suppliers. The
aftershocks of the terrorist attacks were felt immediately in foreign equity markets, in
tourism and travel, in consumer attitudes, and in temporary capital flight from the United
States. Central banking authorities worldwide reacted by injecting liquidity into their
financial systems. After a few months, most began to turn upward again, but what
recovery has occurred has been fragile and difficult to sustain. (Gail Makinen,2002)
The recession, along with increased government spending for the anti-terrorism
campaign, contributed to rising federal debt in the United States and other nations.
Combined with a weakening dollar that pushed up the exchange value of the yen, Euro,
Chinese renminbi, and other currencies, central governments intervened to bolster the
value of the dollar by purchasing more U.S. debt instruments.
Since 9/11, in particular, stock market values in the United Kingdom, Germany,
France, Canada, and Japan have tended to move in tandem with those in the United
States. On each of these markets, equity values, after initially recovering from the 9/11
shock, have subsequently fallen, and on September 11, 2002, they generally were below
was weakened further. The attacks occurred as the world economy was experiencing its
first synchronized global recession in a quarter-century. Global growth was 1.4% for
2001 – down considerably from 4% in 2000. As a result of stimulus monetary and fiscal
policies, particularly in the United States and China, the recession turned toward a weak
economic recovery.
Prior to 9/11, the slowdown in the U.S. economy already was being transmitted to
other economies through trade and investment channels, particularly through a sharp
decline in U.S. imports of high-technology components from Asian suppliers. The
aftershocks of the terrorist attacks were felt immediately in foreign equity markets, in
tourism and travel, in consumer attitudes, and in temporary capital flight from the United
States. Central banking authorities worldwide reacted by injecting liquidity into their
financial systems. After a few months, most began to turn upward again, but what
recovery has occurred has been fragile and difficult to sustain. (Gail Makinen,2002)
The recession, along with increased government spending for the anti-terrorism
campaign, contributed to rising federal debt in the United States and other nations.
Combined with a weakening dollar that pushed up the exchange value of the yen, Euro,
Chinese renminbi, and other currencies, central governments intervened to bolster the
value of the dollar by purchasing more U.S. debt instruments.
Since 9/11, in particular, stock market values in the United Kingdom, Germany,
France, Canada, and Japan have tended to move in tandem with those in the United
States. On each of these markets, equity values, after initially recovering from the 9/11
shock, have subsequently fallen, and on September 11, 2002, they generally were below
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Document Details
University
Strayer University
Subject
Economics