Skip to main content
SpringerLink
Log in

Natural disaster in Japan: implications for world financial markets

  • Policy Brief
  • Published:
Asia Europe Journal Aims and scope Submit manuscript

Abstract

This contribution focuses on the consequences of the natural disaster in Japan for the world financial markets as seen around half a year after the nuclear accident happened. It, thus, focuses on expectations about what would happen in macroeconomics terms later on. For this purpose, it examines how deep the slump in growth was, to what extent Japanese suppliers are integrated into international production chains, and how much the world economy would, thus, be affected. Moreover, it assesses what the economic implications of a forced withdrawal from nuclear energy as a reaction to the disaster would have been. Finally, it elaborates on the consequences of the natural disaster in Japan for the world financial markets and for the development of national debt.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8

Similar content being viewed by others

Notes

  1. For an explanation see https://cbcm.commerzbank.com/de/site/research/economic_research/.

References

  • Bank von Japan (2011) International Investment Report, Tokyo

  • Belke A (2009) Fiscal stimulus packages and uncertainty in times of crisis—the option of waiting can be valuable, though! Econ Anal Policy 39(1):25–46

    Google Scholar 

  • Belke A (2011) Naturkatastrophe in Japan: Verwerfungen auf den Weltfinanzmärkten? DIW-Wochenbericht 78(24):20

    Google Scholar 

  • Braun RA, Ikeda D, Joines DH (2009) The savings rate in Japan. Why it has fallen and why it will remain low. Int Econ Rev 50:291–321

    Article  Google Scholar 

  • Cavallo E, Noy I (2010) The economics of natural disasters - A survey, IDB Working Paper 124, Inter-American Development Bank, May

  • Chen K, Imrohoroglu A, Imrohoroglu S (2006) The Japanese savings rate. Am Econ Rev 96:1850–1858

    Article  Google Scholar 

  • Chen K, Imrohoroglu A, Imrohoroglu S (2007) The Japanese savings rate between 1960 and 2000. Productivity, policy changes, and demographics. Econ Theory 32:87–104

    Article  Google Scholar 

  • Commerzbank (2011) Research Note - ARPI2-Rückgang bei Stabilisierung in Japan begrenzt, Economic Research, Frankfurt/Main

  • DIW (2011) Reader zum Workshop „Konsequenzen der Naturkatastrophe in Japan für die Weltwirtschaft“, June 1, BMWI Workshop at the „Bundesministerium für Wirtschaft und Technologie“, German Institute for Economic Research, Berlin

  • Edison H (2005) Household savings in Japan, in: IMF Country Report 05/272: Japan- Selected issues

  • European Central Bank (2011a) Global repercussions of the earthquake in Japan. Monthly Bulletin, Frankfurt, pp 10–12

    Google Scholar 

  • European Central Bank (2011b) Economic and monetary developments, Monthly Bulletin, Frankfurt/Main, September

  • Farhi E, Gabaix X (2008) Rare disasters and exchange rates, NBER Working Paper, National Bureau of Economic Research, Cambridge/MA, February

  • Fomby T, Ikeda Y, Loayza N (2009) The growth aftermath of natural disasters, The World Bank, Policy Research Working Paper 5002, Washington/DC

  • Fukawa T, Sato I (2009) Projection of pension, health, and long-term care expenditures in Japan through macro simulation. Japan J Soc Secur Policy 8:33–42

    Google Scholar 

  • Gassebner M, Keck A, The R (2010) Shaken, not stirred: the impact of disasters on international trade. Rev Int Econ 18:351–368

    Article  Google Scholar 

  • Horioka C (2006) The dissaving of the aged revisited: The case of Japan, NBER Working Paper 12351, National Bureau of Economic Research, Cambridge/MA

  • Horwich G (2000) Economic lessons of the Kobe earthquake. Econ Dev Cult Chang 48(3):521–542

    Article  Google Scholar 

  • Masumiya M (2011) Impact of the Great Eastern Japan disaster on the property market, NLI Research Institute, Real Estate Analysis Report, 22. April

  • Ministry of Economy, Trade and Industry (2011) Economic impact of the Great East Japan earthquake and current status of recovery, http://www.meti.go.jp/english/earthquake/recovery/pdf/20110516_impact.pdf

  • Mizuho (2011) Economic outlook for FY 2010, FY 2011 and FY 2012, revised after the great east Japan earthquake, 8. April 2011, http://www.mizuho-ri.co.jp/research/economics/pdf/eo/EconomicOutlook1104r.pdf

  • Pelling M, Özerdem A, Barakat S (2002) The macro-economic impact of disasters. Prog Dev Stud 2(4):283–305

    Article  Google Scholar 

  • Rees A (2011) Die Aufwertung des Yen ist ein großes Risiko, in: Boersenzeitung, March 15, No. 51, S. 6

  • Skidmore M, Toya H (2002) Do natural disasters long-term growth? Econ Inq 40(4):664–687

    Article  Google Scholar 

  • Skidmore M, Toya H (2006) Economic development and the impacts of natural disasters. Econ Lett 94:20–24

    Google Scholar 

  • The Economist (2011) Japan’s post-quake economy: casting about for a future. Issue May 19, 2011. Available online

  • UniCredit (2011a) Transmissionskanäle einer möglichen Katastrophe, March 15, Economics & FI/FX Research, Im Brennpunkt, Munich

  • UniCredit (2011b) Risiken für die Weltwirtschaft nehmen weiter zu, March 18, Economics & FI/FX Research, Freitagspapier, Munich

  • UniCredit (2011c) Japan bremst globale Industriekonjunktur, April 1, Economics & FI/FX Research, Freitagspapier, Munich

  • UniCredit (2011d) Griechenland dominiert EZB-Treffen, April 30, Economics & FI/FX Research, Freitagspapier, Munich

  • World Bank (2011) The recent earthquake and tsunami in Japan: implications for East Asia, East Asia Economic and Pacific Update No. 1

Download references

Author information

Authors and Affiliations

  1. University of Duisburg-Essen, Essen, Germany

    Ansgar Belke

  2. Monetary Experts Panel, European Parliament, Brussels, Belgium

    Ansgar Belke

Authors
  1. Ansgar Belke
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ansgar Belke.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Belke, A. Natural disaster in Japan: implications for world financial markets. Asia Eur J 11, 433–444 (2013). https://doi.org/10.1007/s10308-013-0362-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10308-013-0362-6

Keywords

Search

Navigation