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 September 11 attacks in New York and Washington have forced Americans to confront the fact that to live or work in a large city is to be at greater risk of large-scale terrorism. What do these risks, and the public perception of them, imply for cities in general and the future of NewYorkCity in particular? In this article, the authors begin their exploration of this issue by examining why cities exist in the first place. To conduct their analysis, they simulate two key theoretical models of economic geography, using data that approximate the characteristics of a major U.S. city as well as estimates of the costs of the September11 attacks. The authors conclude that the very forces that lead to city formation also lead cities to be highly resilient in the face of catastrophes such as terrorist attacks. They argue that NewYorkCity in particular is likely to continue to thrive despite any ongoing terrorist threat.