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Japan’s 9% of Global GDP Means Expansion Won’t Get Unhinged

The world economic recovery may be sturdy enough to withstand the double-whammy of Japan’s 9.0-magnitude earthquake and the surge in crude-oil prices triggered by tensions in the Middle East.

While Japan risks sinking into a recession and global growth might slow, the expansion likely has the breadth and momentum to last. Unemployment is falling around the world, company profits are rising and monetary policy is easy. The Group of Seven mounted its first joint currency intervention today since 2000 to limit the threat to Japan’s economy.