Japan : Selected Issues

Author/Editor:

International Monetary Fund. Asia and Pacific Dept

Publication Date:

August 5, 2013

Electronic Access:

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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:

English

Publication Date:

August 5, 2013

ISBN/ISSN:

9781475563795/1934-7685

Stock No:

1JPNEA2013002

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

61

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