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

  • Etsuko Katsu


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.


Credit Default Swap Foreign Asset Current Account Deficit Sovereign Debt Domestic Saving 
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Copyright information

© Springer Japan 2013

Authors and Affiliations

  1. 1.Meiji UniversityTokyoJapan

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