Japanese economy

The impact of the earthquake in Japan on the Japanese economy.

• inflation - less supply, prices rise
• exchange rate - this falls which makes imports more expensive 
• government spending - rise, but were would the money come from
• confidence - would be low ex. overseas firms would not invest in the Japanese economy 
• unemployment - will rise because of the radiation. people will not even leave their houses. 

Economist are speculate that earthquake and tsunami has a big influence on Japanese economy and it's pushing the country into recession. So far hundreds of factories are being closed across the Japan and big companies as Toyota, Sony, Nestle, Nissan are having considerable pecuniary loss which greatly affects the economy. Most of them are also selling the dollars and other foreign currencies to prepare for cost of rebuilding domestic economy. 

About 2 million homes are without electricity and about 1,4 million do not have running water. Government estimate losses after disaster for more-less £62 billion. Bank of Japan tries to prevent too much rising of yen as well as it offers help to small banks to make sure they are not run out of the money because in case of such events people are likely to panic and take all savings out of accounts.