1. J.P.Morgan Chase S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L The Euro-Zone Crisis and the Global Economy Prof. Jacob A. Frenkel Chairman, JPMorgan Chase International Chairman, Board of Trustees, G30 Former Governor, Bank of Israel The 12 th Annual Herzliya Conference Herzliya, Israel January 30-February 2, 2012

2. 2 J.P.Morgan Chase 1/30/2012 Global GDP Growth (%)

3. 3 J.P.Morgan Chase 1/30/2012 Real GDP Growth (%) World Economy

4. 4 J.P.Morgan Chase 1/30/2012 Real GDP Growth (%), Selected Countries

5. 5 J.P.Morgan Chase 1/30/2012 Global GDP Shares

6. 6 J.P.Morgan Chase 1/30/2012 Current Account of Balance of Payments

7. 7 J.P.Morgan Chase 1/30/2012 European Union Exports by Destination

8. 8 J.P.Morgan Chase 1/30/2012 Unemployment Rate (%): Selected Euro Area Countries

9. 9 J.P.Morgan Chase 1/30/2012 Relative Unit Labor Costs, Manufacturing Sector Source: OECD December 2010, Last observation: Q4/2010

10. 10 J.P.Morgan Chase 1/30/2012 Fiscal Positions: Net Debt – Select Euro Area Economies

11. 11 J.P.Morgan Chase 1/30/2012 Euro Area Current Account Balance (% of GDP)

12. 12 J.P.Morgan Chase 1/30/2012 Current Account Balance and Budget Deficit (% of GDP 2010)

13. 13 J.P.Morgan Chase 1/30/2012 Gross National Saving Rate and Budget Deficit (% of GDP 2010)

14. 14 J.P.Morgan Chase 1/30/2012 Gross Government Debt and Budget Deficit (% of GDP 2010)

15. 15 J.P.Morgan Chase 1/30/2012 10yr Government Bond Yield Spread

16. 16 J.P.Morgan Chase 1/30/2012 10yr Government Bond Yields

17. 17 J.P.Morgan Chase 1/30/2012 European Sovereign and Corporate CDS Spreads

18. 18 J.P.Morgan Chase 1/30/2012 EUR/USD Spot Exchange Rate

19. 19 J.P.Morgan Chase 1/30/2012 Coordinated Global Rate Cuts

20. 20 J.P.Morgan Chase 1/30/2012 Total Assets of Key Central Banks (indexed levels)

21. 21 J.P.Morgan Chase 1/30/2012 U.S. Unemployment, by Level of Education

22. 22 J.P.Morgan Chase 1/30/2012 U.S. Unemployment, by Duration

23. 23 J.P.Morgan Chase 1/30/2012 World Trade Volume