Can Japan survive and overcome global recession?
Guest Author: Takatoshi Ito, University of Tokyo Just a couple of years ago, very few people expected that the US-based problem in housing and finance would grow to a full-scale financial crisis and global recession which seems almost certain today. There are four, mutually reinforcing channels through which the economic crisis can be transmitted from the US to the world economy: (1) the global linkage of stock prices, (2) fluctuations in foreign exchanges, (3) increases in risk sensitivity,