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In the earthquake and tsunami, Japan faces its most serious crisis in a generation. The terrible human toll is still being(1), even as relief efforts accelerate, the estimate of live lost have(2)from a few hundred in the hours after the flooding to projections surpassing 10, 000. And(3)the humanitarian scale of the disaster is coming into(4), the ultimate scope of the crises at the Fukushima Daiichi, Fukushima Daini and Onagawa nuclear power plant remains(5), as does the extent of damage to critical infrastructure(6)the country’s North Pacific coast.
In the midst of the disaster, economists and policy makers are(7)with the delicate task of assessing the implications of current events for Japan’s already-tenuous economic(8). The analysis is far-reaching in its relevance, not least because of Japan’s position(9)the world’s third-largest economy, the challenges it already faces in moving toward fiscal sustainability and its role in supporting global financial markets, (10)currency markets and the market for U.S. treasuries.
In(11)of the earthquake, the economic(12)for Japan was already fairy dim. The economy was projected to grow(13)just 1.7 percent in 2011, according to consensus estimates, roughly half the(14)of the United States. Significant new fiscal(15)to support the economy was largely ruled out given the country’s already substantial budget deficit. At nearly 200 percent, the country’s gross debt-to-GDP ratio is second only to Zimbabwe’s, though its net debt is roughly half that level and serving costs remain low.

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