Since the collapse of Asia's economies, experts have been trying to determine its effect on the American economy. Following a background report, Elizabeth Farnsworth and guests discuss the impact of Asia's economic crisis on different regions of the United States.

SPENCER MICHELS: For the people in Indonesia, Malaysia, South Korea and Thailand, the financial crisis continues to mean lost jobs, higher prices, and runs on basic items like cooking oil, as the populace has watched the value of Asian currencies decline. The crisis that began six months ago has resulted in world attention on Asian economies that had been robust and expanding, but collapsed when investors in one country after another lost confidence and pulled their money out. The International Monetary Fund negotiated bailout packages with several Asian nations to try to calm the crisis but had to strengthen those deals when investors initially showed a continued lack of confidence. Recently there have been some positive signs as stock markets in Hong Kong, Korea, Thailand, and Indonesia have rebounded from their recent dramatic lows.

In the United States, officials, businesspeople, and economists have struggled to assess the impact of Asia's problems on the American economy. For Americans, the Asia effect looms as a double edged sword, On the plus side, the lower value of Asian currencies means prices on Asian-made goods are down, creating potential bargains in the checkout line. Americans can save 15% on high end computers, because the cost of Asian-made components is falling. And U.S. home construction is strong, analysts say, because interest rates are coming down. That's partly because money that was invested in Asia is now being invested in U.S. Government securities, which lowers interest rates.

On the other hand, cheap or foreign-made goods pose a threat to competing American manufacturers. In high-tech, IBM and Microsoft are warning of trouble ahead, while Raytheon Company says it will eliminate a thousand jobs partly because of Asia. And Boeing may be stuck with eight new jet fighters worth $400 million, which the Thais ordered but now can't pay for. This week, Wall Street signaled its belief that Asian troubles will not have a major impact here. The Dow Jones rose a hefty 201 points yesterday and nearly 53 points today. But U.S. officials remain cautious.

At a congressional hearing last Friday Treasury Secretary Robert Rubin warned that even though he doesn't expect the U.S. economy to be greatly affected, there is still danger and America must help bail out Asian economies.

ROBERT RUBIN, Secretary of the Treasury: If the financial instability was spread more broadly to other to other emerging markets, then the impact on American workers, farms, and businesses could be far greater because roughly 40 percent of our total exports today go to developing and transitioning countries around the world and because the spread could lead to currency depreciation in this broader range of countries.

SPENCER MICHELS: Federal Reserve Chairman Alan Greenspan told the Senate Budget Committee Asia's problems will be felt here.

ALAN GREENSPAN: To date, we have as yet experienced only the peripheral winds of the Asian crisis.

SPENCER MICHELS: But before spring is over, he said, competition from imports and decline in demand for American exports will be intensified; however, Greenspan said that would not be such a bad prospect.

ALAN GREENSPAN: Such a moderation would appear helpful at this juncture. A likelihood that we shall be seeing some lower prices on imported goods as a result of the difficulties in Asia may afford some breathing room from inflation pressures.

SPENCER MICHELS: Such prospects and other impacts of the Asian crisis will play a part in the discussions today as the Federal Reserve Board meets in Washington to set interest rate policy. The Board's decision is due tomorrow.