Dean Baker Blog | Japan's Government Will Soon Make a Profit on Its Huge Debt | TalkMarkets
Co-Director at Center for Economic and Policy Research
Dean Baker co-founded CEPR in 1999. His areas of research include housing and macroeconomics, intellectual property, Social Security, Medicare and European labor markets. He is the author of several books, including "Getting Back to Full Employment: A Better ...more

Japan's Government Will Soon Make a Profit on Its Huge Debt

Date: Tuesday, October 1, 2019 11:08 AM EDT

The NYT neglected to mention this fact in this piece talking about Japan's economy. While the piece noted that Japan's debt to GDP ratio is close to 250 percent, the highest for any wealthy country, it didn't point out that the debt service burden is virtually zero.

In fact, because much of Japan's debt carries a negative nominal interest rate, the I.M.F. projects that its burden will actually be negative as of 2021. This means that people will on net be paying Japan to lend it money so that the debt is a source of revenue.

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