Japan : Selected Issues

Publication Date: August 05, 2013
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Summary: This Selected Issues paper examines implications for long-term bond yields in case of Japan. The analysis finds that so far, upward pressure on interest rates from high public debt has been offset by domestic factors, including a stable investor base with a preference for safe assets. As these effects could decline with population aging, yields could rise unless reforms are implemented to stimulate growth and reduce the public debt-to-GDP ratio. In such a scenario, long-term Japanese government bond rates would remain relatively low and stable. The paper also analyzes to what extent rising health care spending poses a fiscal risk to Japan’s economy.
Series: Country Report No. 13/254
Subject(s): Interest rates | Health care | Labor markets | Fiscal reforms | Banking sector | Financial institutions | Selected issues | Japan

Publication Date: August 05, 2013
ISBN/ISSN: 9781475563795/1934-7685 Format: Paper
Stock No: 1JPNEA2013002 Pages: 61
US$18.00 (Academic Rate:
US$18.00 )
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