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  • It will likely take some time to assess the broader impact on the Japanese economy through various channels.
  • The blow to the European economy could indirectly weigh on the Japanese economy

Well, the blow will likely come from soaring commodity prices. A spike in energy prices in particular could help spur inflation, but it will also have a cost for Japanese businesses and consumers, as they are heavy importers of oil. The good news is that most of Japan’s imported oil comes from the Middle East, but it won’t help that prices are skyrocketing like they are now.

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