But from the beginning of autumn 2011, supply-side constraints are likely to ease as the power shortage problem is mitigated amid the progress with reconfiguration of supply chains. In fact, in the past two and a half months since the earthquake, an increasing number of factories have made progress in restoration efforts and resumed production.
Cross-country studies suggest that economies that overly rely on bank funding may be characterized by lower and more volatile long-run growth than more market-based economies.6 There is no question that healthy banks act as shock-absorbers in normal recessions; but when recessions coincide with financial crises, as in recent years, bank-dependent economies are more severely hit than economies with a diversified financial system.