Japan Selected Issues

This Selected Issues paper examines implications for long-term bond yields in case of Japan. The analysis finds that so far, upward pressure on interest rates from high public debt has been offset by domestic factors, including a stable investor base with a preference for safe assets. As these effec...

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Bibliographic Details
Corporate Author: International Monetary Fund Asia and Pacific Dept
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2013
Series:IMF Staff Country Reports
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Japan  |b Selected Issues 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2013 
300 |a 61 pages 
651 4 |a Japan 
653 |a Interest rates 
653 |a Public debt 
653 |a Economics of the Handicapped 
653 |a Banks 
653 |a Finance 
653 |a Labour; income economics 
653 |a Public finance & taxation 
653 |a Banks and banking 
653 |a Employment protection 
653 |a Financial services 
653 |a Debts, Public 
653 |a Labor markets 
653 |a Mortgages 
653 |a Aging 
653 |a Economics of the Elderly 
653 |a Labor 
653 |a Population and demographics 
653 |a Demography 
653 |a Macroeconomics 
653 |a Banking 
653 |a Population & demography 
653 |a Depository Institutions 
653 |a Non-labor Market Discrimination 
653 |a Debt Management 
653 |a Micro Finance Institutions 
653 |a Debt 
653 |a Labor Contracts 
653 |a Demand and Supply of Labor: General 
653 |a Population aging 
653 |a Sovereign Debt 
653 |a Manpower policy 
653 |a Banks and Banking 
653 |a Labor market 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Long term interest rates 
653 |a Public Finance 
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520 |a This Selected Issues paper examines implications for long-term bond yields in case of Japan. The analysis finds that so far, upward pressure on interest rates from high public debt has been offset by domestic factors, including a stable investor base with a preference for safe assets. As these effects could decline with population aging, yields could rise unless reforms are implemented to stimulate growth and reduce the public debt-to-GDP ratio. In such a scenario, long-term Japanese government bond rates would remain relatively low and stable. The paper also analyzes to what extent rising health care spending poses a fiscal risk to Japan’s economy