Japanese disaster causes economic roller coaster
Posted Mar 14, 2011 12:19 pm.
This article is more than 5 years old.
Last week’s massive earthquake and tsunami that rocked Japan has produced red numbers on financial markets around the world.
Tokyo’s stock market plunged 6.2 per cent, even as Japan’s central bank injected $184 ( b) billion dollars U-S into money markets in a bid to lessen the damage.
The Chief Economist at TD Economics says Japan accounts 8 per cent of global economic activity, with the region hit the hardest representing about 8 per cent of Japan’s economy.
Craig Alexander says economics can be a rather perverse business, with many economists already fixating on future profits that will be coming out of that country when the rebuilding begins.
Alexander says people in North America don’t have to look back too far to realize the economic benefits that can follow a disaster, pointing to the rebuilding along the US Gulf Coast after Hurricane Katrina back in the summer of 2005.
