The Economic Impact of the Japanese Disasters
Harvard Business Review
MARCH 22, 2011
Transportation disruptions and the closing of many factories throughout Japan will shrink Japanese aggregate demand and disrupt supply chains worldwide. Analysts have already reduced forecasted GDP growth rates for Japan by 0.5% at the market's close on Monday (3/14), erasing more than $300 billion of equity value, and lost another 10.6% Bold recovery plans would seem to be in order, but how that response is financed holds great import for Japan's economic future.