Severe tremors of the earth’s body may result in the destruction of large parts of the assets of private households as well as the infrastructure of the affected area. As a result, they also have a variety of effects on financial flows; not only in the affected country, but often also worldwide. For example, the price of Japanese government bonds fell immediately after a devastating earthquake and subsequent tsunami in the spring of 2011. This event in particular led to considerations of – how a country affected by earthquakes should in principle be assisted by contractual international financial aid and – that government bonds should also be backed by equity capital. – Cf. ECB Monthly Bulletin, May 2011, p. 10 ff. (Impact of the earthquake in Japan on the global economy).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: firstname.lastname@example.org