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% With government deficits equaling 10% of GDP, and national debt at 200% of GDP, funding the recovery plan with still more government debt would be imprudent.