Japan: Selected Issues

August 5, 2013

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Format: Chicago

Japan: Selected Issues, (USA: International Monetary Fund, 2013) accessed September 19, 2024

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.

Subject: Aging, Banking, Employment protection, Financial services, Labor, Labor markets, Long term interest rates, Population and demographics, Public debt

Keywords: Aging, Asia and Pacific, Bank, BoJ purchase, Copayment rate, CR, Employment protection, GDP, Global, Inflation dynamics, ISCR, Japan, Japanese bank, Labor market duality, Labor markets, Long term interest rates, Worker

Publication Details

Pages:

61
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2013/254
Stock No:

1JPNEA2013002
ISBN:

9781475563795
ISSN:

1934-7685

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