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When Terrorism Strikes, History Shows Economies Prove Resilient

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The French economy has history on its side. From the attacks of September 11 to those on Spain in March 2004 and London in July 2005, industrial economies have proven more resilient to terrorism than first feared, according to those economists who have studied the links. That may bring some reassurance to France three days after at least 129 people were killed across Paris in Europe’s worst terror attack in a decade and as its economy continues to record lackluster expansion. “A diversified economy like France will experience no adverse influence from the attack whatsoever,” Todd Sandler, who teaches at the University of Texas at Dallas and co-authored...

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