Japan’s true debt level

The Mystery of Japan’s Private Debt Levels (Solved?)

“While the long term result is uncertain, Japan has been carving a third option for nearly the last two decades — reduce nominal interest rates to very low levels to reduce the debt servicing burden while leaving the debt in place in an attempt to grow out of it, even if doing so is accompanied by economic stagnation.”

Doesn’t economic stagnation mean that it’s hard to grow out of the debt burden? I say yes.


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