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 attack on the World Trade Center had an enormous financial, as well as emotional, impact on New York City. This article measures the short-term economic effects on the city’s labor force and capital stock through June 2002, the end of the recovery process at the World Trade Center site. Using a lifetime-earnings loss concept, the authors estimate that the nearly 3,000 workers killed in the attack lost $7.8billion in prospective income. Moreover, the employment impact in the key affected sectorssuch as finance, air transportation, hotels, and restaurantstranslated into an estimated earnings shortfall of $3.6billion to $6.4billion, while the cost of repairing and replacing the damaged physical capital stock and infrastructure totaled an estimated $21.6billion. Accordingly, the authors determine that the total attack-related cost to NewYorkCity through June 2002 was between $33billion and $36billion. The article also examines the attack’s effects on the city’s most economically vulnerable residents and analyzes survey findings on the incidence of post-traumatic stress disorder and alcohol and drug use after September11.