The impact of the recent environmental and nuclear crisis on the Japanese economy is very evident. This will have both supply side and demand side consequences for the world economy and also the SA/KZN economy. Interest rates are already at about 0% thus its of no use, thus the focus will be on fiscal policy. However the Japanese budget deficit is already very high thus the additional borrowing will be very expensive.

The longer the economy of the 2nd biggest economy lingers to more volatile and risky will the economic recovery be.

Continue reading.....

Regards


General Manager: Intergovernmental Relations
KZN Provincial Treasury
Economist (MEcon, US)
http://www.kzntreasury.gov.za/