Transitioning to a Self-Sustaining U.S. Economic Expansion in 2011-2012
Dr. Stuart Hoffman, Chief Economist, The PNC Financial Services Group
As Japan works to cope with extraordinary destruction, the Bank of Japan injected 2.5 trillion yen ($305 billion) into the economy in order to ensure adequate liquidity and the Japanese government is considering an emergency tax to help pay for relief and recovery work. In terms of scale, think of Japan’s economy as roughly the same size as China’s. A strong China and a weak Japan are roughly equivalent in GDP terms to a moderately strong U.S economy. We do not expect that the near term weakness in Japan will be enough to derail the ongoing global and U.S. economic expansion.