
How Japan Dealt With Their Debt Problem
Published July 18, 2025
Views 434K | Likes 11.1K | Comments 310
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What happens when a country mismanages its debt? In 1990, Japanese policymakers decided to deal with its debt obligations by printing a lot of money to buy bonds. They further devalued the currency by giving bondholders significantly lower interest rates than in the US. As a result, Japanese bonds lost 45% relative t…
- Published
- July 18, 2025
- Made for kids
- No
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