Speculation and innovation about catastrophe index fund induced by Japanese tsunami

The earthquake which happened off the coast of Japan Miyagi Prefecture, the northeastern part of Japan´s Honshu Island, has evolved into a “nuclear radiation crisis”. However, what is more frightening than the impact of the crisis itself on the entire environment, including the economic environment is that it brings people´s fear of global investment institutions. The financial tsunami triggered by currency stock market boom/bust is the most deadly blow to the world economy and the environment. This article aims to take the impact of Japanese tsunami and nuclear radiation on economy as an example to study method of improving catastrophe index model and speculation and research of model innovation.