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“Assessing the Economic Aftershocks of Japan’s March 11 Earthquake” on JapanFocus

Assessing the Economic Aftershocks of Japan’s March 11 Earthquake Stephen S. Roach warns us not to be complacent about the effects of the March 11 earthquake in Japan on the global economy. After outlining a “narrow view” based on a declining global profile for the Japanese economy – a shrinking percentage of both global exports and GDP, a rising China, and an irreplaceable position in only a handful of critical upstream industrial components – Roach urges us not to accept the “superficial” conclusions that might flow from this view: that Japan “doesn’t really matter any more” and that disruptions to global economic activity from the March 11 earthquake and its aftermath will be “transitory” and “small.”

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