Economic effect of Paris attacks are likely to be limited

When it comes to the long-term national economic effects on western cities from outrages such as the killings in Paris, history tells us that the size of the attack does matter.

The 9/11 attacks on New York and Washington lowered US GDP and sent the costs of crude oil surging and most world stock market indices plunging.

The political fallout and the subsequent American invasion of Iraq escalated the costs and likely pushed a number of US airlines into bankruptcy.