Japan’s government bonds: this time it won’t end well
Even as interest costs mount, politicians promise handouts
FOR YEARS Japan was a reassuring example for governments. Even as its net public debt peaked at 162% of GDP in 2020, it suffered no budget crisis. Instead it enjoyed rock-bottom interest rates, including borrowing for 30 years at 0.1%. Now, though, Japan is going from comfort to cautionary tale.
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This article appeared in the Leaders section of the print edition under the headline “This time it won’t end well”
From the June 21st 2025 edition
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