Connecting 9/11 to the Financial Crisis

David Joel Skandera

doi:doi:10.11648/j.ijefm.20150304.16

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Connecting 9/11 to the Financial Crisis

David Joel Skandera

Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 4)

Received: 2 July 2015 Accepted: 14 July 2015 Published: 22 July 2015

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Abstract

This paper summarizes and analyzes research on the economic impact of United States fiscal and monetary policy in the wake of the 9/11-terrorist attacks. Therein, it attempts to connect this tragedy to the financial crisis of the late-2000s, which is still not fully understood. The large number of factors identified by numerous experts as the causes for the collapse of the financial system makes the crisis a difficult topic to study. This analysis provides a stepping-stone for any further research in that it helps explain how the factors that led to the crisis were created in the first place. Expert opinions, academic studies, as well as both a Cobb-Douglas production function and one of the newest specifications of the Taylor Rule are looked at throughout this paper. While the latter model shows how monetary policy should have been determined throughout the 2000s, the former helps to analyze the impact of fiscal policy after 9/11 on monetary policy. Based on the research and analysis presented in this paper, we can conclude that the factors that caused the collapse of the financial system were largely impacted by government spending in response to the terrorist attacks and monetary policy between 2001 and 2008. This conclusion implies that the crisis could have been minimized if not prevented altogether.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 4)
DOI	10.11648/j.ijefm.20150304.16
Page(s)	367-390
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Crisis, Fiscal Policy, Monetary Policy, Liquidity Effect, Paradox of Monetary Economics, Money Supply, Interest Rates, Systemic Risk

References

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David Joel Skandera. (2015). Connecting 9/11 to the Financial Crisis. International Journal of Economics, Finance and Management Sciences, 3(4), 367-390. https://doi.org/10.11648/j.ijefm.20150304.16

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ACS Style

David Joel Skandera. Connecting 9/11 to the Financial Crisis. Int. J. Econ. Finance Manag. Sci. 2015, 3(4), 367-390. doi: 10.11648/j.ijefm.20150304.16

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AMA Style

David Joel Skandera. Connecting 9/11 to the Financial Crisis. Int J Econ Finance Manag Sci. 2015;3(4):367-390. doi: 10.11648/j.ijefm.20150304.16

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@article{10.11648/j.ijefm.20150304.16,
  author = {David Joel Skandera},
  title = {Connecting 9/11 to the Financial Crisis},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {4},
  pages = {367-390},
  doi = {10.11648/j.ijefm.20150304.16},
  url = {https://doi.org/10.11648/j.ijefm.20150304.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150304.16},
  abstract = {This paper summarizes and analyzes research on the economic impact of United States fiscal and monetary policy in the wake of the 9/11-terrorist attacks. Therein, it attempts to connect this tragedy to the financial crisis of the late-2000s, which is still not fully understood. The large number of factors identified by numerous experts as the causes for the collapse of the financial system makes the crisis a difficult topic to study. This analysis provides a stepping-stone for any further research in that it helps explain how the factors that led to the crisis were created in the first place. Expert opinions, academic studies, as well as both a Cobb-Douglas production function and one of the newest specifications of the Taylor Rule are looked at throughout this paper. While the latter model shows how monetary policy should have been determined throughout the 2000s, the former helps to analyze the impact of fiscal policy after 9/11 on monetary policy. Based on the research and analysis presented in this paper, we can conclude that the factors that caused the collapse of the financial system were largely impacted by government spending in response to the terrorist attacks and monetary policy between 2001 and 2008. This conclusion implies that the crisis could have been minimized if not prevented altogether.},
 year = {2015}
}

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TY  - JOUR
T1  - Connecting 9/11 to the Financial Crisis
AU  - David Joel Skandera
Y1  - 2015/07/22
PY  - 2015
N1  - https://doi.org/10.11648/j.ijefm.20150304.16
DO  - 10.11648/j.ijefm.20150304.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
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AB  - This paper summarizes and analyzes research on the economic impact of United States fiscal and monetary policy in the wake of the 9/11-terrorist attacks. Therein, it attempts to connect this tragedy to the financial crisis of the late-2000s, which is still not fully understood. The large number of factors identified by numerous experts as the causes for the collapse of the financial system makes the crisis a difficult topic to study. This analysis provides a stepping-stone for any further research in that it helps explain how the factors that led to the crisis were created in the first place. Expert opinions, academic studies, as well as both a Cobb-Douglas production function and one of the newest specifications of the Taylor Rule are looked at throughout this paper. While the latter model shows how monetary policy should have been determined throughout the 2000s, the former helps to analyze the impact of fiscal policy after 9/11 on monetary policy. Based on the research and analysis presented in this paper, we can conclude that the factors that caused the collapse of the financial system were largely impacted by government spending in response to the terrorist attacks and monetary policy between 2001 and 2008. This conclusion implies that the crisis could have been minimized if not prevented altogether.
VL  - 3
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Author Information

David Joel Skandera

Departments of Economics and Management Studies, St. Olaf College, Northfield, United States of America

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APA Style

David Joel Skandera. (2015). Connecting 9/11 to the Financial Crisis. International Journal of Economics, Finance and Management Sciences, 3(4), 367-390. https://doi.org/10.11648/j.ijefm.20150304.16

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ACS Style

David Joel Skandera. Connecting 9/11 to the Financial Crisis. Int. J. Econ. Finance Manag. Sci. 2015, 3(4), 367-390. doi: 10.11648/j.ijefm.20150304.16

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AMA Style

David Joel Skandera. Connecting 9/11 to the Financial Crisis. Int J Econ Finance Manag Sci. 2015;3(4):367-390. doi: 10.11648/j.ijefm.20150304.16

Copy | Download

@article{10.11648/j.ijefm.20150304.16,
  author = {David Joel Skandera},
  title = {Connecting 9/11 to the Financial Crisis},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {4},
  pages = {367-390},
  doi = {10.11648/j.ijefm.20150304.16},
  url = {https://doi.org/10.11648/j.ijefm.20150304.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150304.16},
  abstract = {This paper summarizes and analyzes research on the economic impact of United States fiscal and monetary policy in the wake of the 9/11-terrorist attacks. Therein, it attempts to connect this tragedy to the financial crisis of the late-2000s, which is still not fully understood. The large number of factors identified by numerous experts as the causes for the collapse of the financial system makes the crisis a difficult topic to study. This analysis provides a stepping-stone for any further research in that it helps explain how the factors that led to the crisis were created in the first place. Expert opinions, academic studies, as well as both a Cobb-Douglas production function and one of the newest specifications of the Taylor Rule are looked at throughout this paper. While the latter model shows how monetary policy should have been determined throughout the 2000s, the former helps to analyze the impact of fiscal policy after 9/11 on monetary policy. Based on the research and analysis presented in this paper, we can conclude that the factors that caused the collapse of the financial system were largely impacted by government spending in response to the terrorist attacks and monetary policy between 2001 and 2008. This conclusion implies that the crisis could have been minimized if not prevented altogether.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Connecting 9/11 to the Financial Crisis
AU  - David Joel Skandera
Y1  - 2015/07/22
PY  - 2015
N1  - https://doi.org/10.11648/j.ijefm.20150304.16
DO  - 10.11648/j.ijefm.20150304.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 367
EP  - 390
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20150304.16
AB  - This paper summarizes and analyzes research on the economic impact of United States fiscal and monetary policy in the wake of the 9/11-terrorist attacks. Therein, it attempts to connect this tragedy to the financial crisis of the late-2000s, which is still not fully understood. The large number of factors identified by numerous experts as the causes for the collapse of the financial system makes the crisis a difficult topic to study. This analysis provides a stepping-stone for any further research in that it helps explain how the factors that led to the crisis were created in the first place. Expert opinions, academic studies, as well as both a Cobb-Douglas production function and one of the newest specifications of the Taylor Rule are looked at throughout this paper. While the latter model shows how monetary policy should have been determined throughout the 2000s, the former helps to analyze the impact of fiscal policy after 9/11 on monetary policy. Based on the research and analysis presented in this paper, we can conclude that the factors that caused the collapse of the financial system were largely impacted by government spending in response to the terrorist attacks and monetary policy between 2001 and 2008. This conclusion implies that the crisis could have been minimized if not prevented altogether.
VL  - 3
IS  - 4
ER  -

Copy | Download