That is an important question. For an excellent response, I’d like to refer you to a recent article by Robert T. Parry, President and Chief Executive Officer of the Federal Reserve Bank of San Francisco. His evaluation appeared in the Bank’s Economic Letter of December 7, 2001. The article provides a thorough analysis of the Federal Reserve’s response to the attacks, the economic outlook over the short run, and the longer-term prospects for the economy. You may wish to link to the article via the Bank’s website using the address shown below: