The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach & Education function engages, empowers and educates the public in the Second District. Our outreach mission furthers the Bank’s commitment to the region by listening to the communities we serve and developing programs, analysis and sponsored conferences and clinics to help meet their needs. Our education mission aims to advance public knowledge about the Federal Reserve System and its role in the economy.
The Impact of the Asia Crisis on U.S. Industry: An Almost-Free Lunch?
September 2000Volume 6, Number 3
JEL classification: F1, L6
Author: James Harrigan
Despite predictions to the contrary, the Asia crisis had only modest overall effects on the United States. The expected surge in import volumes did not materialize and the drop in demand for U.S. exports was not enough to slow the nation’s robust economy. Nevertheless, these overall effects could have masked other, larger effects in particularly vulnerable U.S. industries. To examine this possibility, the author conducts a sector-level analysis of the turmoil’s impact. He concludes that, with the exception of the steel industry, imports from Asia do not compete directly with U.S. products. Accordingly, an appreciation in the dollar with respect to Asian currencies leads to consumption gains with little or no domestic pain.