Is Japan a Debt or a Currency Crisis? - Robin J Brooks | Substack
Is Japan a Debt or a Currency Crisis? - Robin J Brooks | Substack
Source: Robin J Brooks | Substack
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DW NOTE
Japan is running a 264% debt-to-GDP ratio with bond yields the BOJ refuses to let clear. Whether you call it a debt crisis or a currency crisis depends on which explodes first — the fiscal arithmetic or the yen. Either way, the endgame is the same: someone holding Japanese government bonds gets paid back in confetti.