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 and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
Contrary to the expectations of many economists, the 1997-98 Asian currency crisis had a positive, albeit small, impact on U.S. economic growth, according to a study by the Federal Reserve Bank of New York.
Senior economists Eric van Wincoop and Kei-Mu Yi find that the effects of lower interest rates on consumption and investment more than compensated for the negative contribution of the larger trade deficit. On the supply side, the depreciated Asian currencies led to lower U.S. imported intermediate goods prices, boosting output. On net, U.S. GDP was found to be about 0.2 percent, or $15-$20 billion, higher.
The analysis also finds that:
Almost all of the net capital outflows from the crisis countries, about $80 billion, originated as banking flows; the majority went first to offshore center banks and later to banks in Europe.
Much of the capital that left Asia eventually reached the United States, but in the form of foreign direct investment and portfolio investment rather than banking flows.