Japan’s devastating 8.9 magnitude earthquake has impacted the global market. The Bank of Japan injected $97.8bn into the financial system in attempt to calm the market a day after it fed a record $184bn into money markets and eased monetary policy.
On the other hand the Dollar value rose by 0.8 percent.
6 comments:
Ultimately i think it is good, think about all the additional aid that Japan will receive from all over the globe. This aid comes not only from other governments but also regular citizens halfway across the world who feel a need to help others. This aid greatly reduces the need for Japan to continue to pour money into their economy, especially since it is money they dont have.
Japan has aided a lot of countries before, so this is just the way it's getting back. If every country has to lean on itself during crisis, many countries might have failed and affect the world's development more negatively.
Also, the damage from Japan's incident to global economy should be moderate and short-lived. It should help ease the prices of many products since Japan is a major importer of fuel and agricultural products.
In case you guys haven't followed up the news recently, Japan has received far less financial aid from the countries, globally. Here is a link below:
http://www.msnbc.msn.com/id/42099106/ns/business-world_business/
If you compare Japan to Haiti in the first week after the earthquake struck. Japan only received $47 million meanwhile Haiti received far more than $150 million. I thought this is interesting to see.
Adam, the damage cost that condoned in Japan will exceed the contributions given by countries. But I suppose every penny counts, especially in this state of world's economy.
Even without the earthquake Haiti would still need financial aid anyways. I think the fact that Japan is getting much smaller aid is due to their superior financial situation prior to the crisis They should have compared with what the US received after Hurricane Katrina instead.
It is interesting to see how Japan has received far less aid that other countries' in similar situations in the past. Several countries have some historical issues with Japan and that might be why they are not inclined to help Japan.
I read the news recently, and it said that the supply of certain products from Japan will be cut off for a period of time. And this, will lead to a price increasing of goods that made in Japan.Also, as the 3rd largest economy in the world, this crisis will for sure, pull down the recovery of the world economy.
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