1:45Shorts

How Japan Dealt With Their Debt Problem

Published July 18, 2025

Views 434K  |  Likes 11.1K  |  Comments 310
Views#881,699Global
Views#238,540Unknown country

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Principles by Ray DalioPrinciples by Ray Dalio
3.18M subs642 videosApr 2006

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434,312

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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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