Japan is facing upheaval on a huge scale as it grapples with the massive clean-up operation, a potential nuclear meltdown, power shortages and huge disruption to the economy. The Bank of Japan is to inject 15 trillion yen into the banking system to stabilise financial markets. Tokyo's Nikkei 225 index fell 6.2% on the first day of trading after Friday's quake as the market assessed the full impact of the devastation. Analysts say that the central bank is making sure there is no panic in the market by ensuring enough liquidity in the bank system.
Any crisis that occur within the country cause a negative impact to many sectors of industry including business sector. Japan which is a member of the group of 8 (G8) has more influence to the world economy. If Japan's economy collapse, it will send a bad signal to the world market. As a result, it is necessary to solve this problem as soon as possible. One of the monetary policy that can ease its economy is injection money to the japan's market in order to increase a liquidity in market. In addition, there should be many policies that is about to launch ;however, everyone ,not only Japanese, has to be a part to heal the world.
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ReplyDeleteNatural disaster always be one of the main factors that has an impact to economic. In case of Japan, I think it might not cause a big impact like "hamburger crisis" because US market is much more bigger than Japan and most of international market use US dollar as international currency not Japanese Yen. It might effect only to Asian market, moreover,Japan also has a very good system and policies to deal with such a problem. I hope Japan could over come with this problem soon
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