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Comment Paper to Chapter “European Sovereign Crisis and Its Implications for Japan: Reducing Budget Deficits Without Damaging Recovery”

  • Etsuko Katsu
Chapter

Abstract

Japan currently faces a significant amount of outstanding sovereign debt, and to avoid a liquidity crises similar to the European sovereign debt crises, Japan must rapidly engage in fiscal consolidation, including an immediate increase in consumption tax and the reform of its social security system. However, Japan is not yet experiencing the crisis situations seen in Europe (for example in Greece, Italy, and Spain) because of a large pool of domestic savings that has resulted in a substantial current account surplus, and has acted as a breakwater.

Keywords

Credit Default Swap Foreign Asset Current Account Deficit Sovereign Debt Domestic Saving 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Japan 2013

Authors and Affiliations

  1. 1.Meiji UniversityTokyoJapan

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