Hurricanes can cause tremendous destruction and terrible fatalities. But in the U.S, with its massive and diversified economy, their impact is tough to see from the macro level. In the aftermath of hurricane carnage of historic scope in the highly populated U.S. mid Atlantic, a huge impact on living conditions in New York and New Jersey should be expected for at least some weeks. At the same time, history shows little discernable macroeconomic impact from hurricanes. Even hurricane Katrina is difficult to recognize in macroeconomic activity measures and the latest severe example in Sandy is unlikely to prove different.

(Dr. Benny Peiser)