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International Capital Flows Following the September 11 Attacks (CRS Report for Congress)

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Release Date Jan. 9, 2002
Report Number RS21102
Report Type Report
Authors James K. Jackson, Foreign Affairs, Defense, and Trade Division
Source Agency Congressional Research Service
Summary:

A major concern following the terrorist attacks on New York and Washington was that foreigners would curtail their purchases of U.S. financial assets and reduce the total inflow of capital into the U.S. economy, thereby weakening the value of the dollar. Actions taken by the Federal Reserve and other central banks in the aftermath of the attacks were largely successful in stemming panic selling of dollar-denominated assets.