ECON 102 Lecture Notes - Lecture 21: September 11 Attacks, Monetary Policy, Great Moderation
Document Summary
Role of september 11, 2001 terrorist attack: many commentators were concerned that the sept. 11 attacks would greatly weaken the economy. It is clear, however, that the recession was well underway before the attacks: somewhat ironically, the economy starts to recover in the fourth quarter of. Another "jobless" recovery: the economy resumed positive growth in the fourth quarter of 2001 and did not had a negative growth quarter in 2002 or 2003. Therefore, the recession, as it"s usually defined relative to a "zero growth benchmark" has been over since late 2001: however, growth has been slow in many of the quarters since the end of 2001. The new job numbers were well below this figure for every quarter from the middle of 2000 through 2003. Most of these quarters had negative job growth. This stretch of poor job performance is unusually long, even though the recession was relatively mild.
