American Enterprise Institute on Nostr: Japan’s Cautionary Economic Tale ========== Japan's economy is in recession, public ...

Japan’s Cautionary Economic Tale
==========

Japan's economy is in recession, public finances are unsustainable, and the currency is at record lows. The decline of the yen has increased import costs and inflation. Japan's high public debt limits the Bank of Japan's ability to support the currency and deal with inflation. The country's aging population and declining birth rate worsen its economic challenges. The US, although with lower public debt than Japan, is dependent on foreign financing and vulnerable to a funding crisis. Congress should take measures to reduce the budget deficit and put public debt on a sustainable path. However, there is a lack of serious constituency in Congress for responsible budget policy.

#Japan #Economy #PublicFinances #Currency #Recession #Inflation #PublicDebt #BudgetDeficit #Congress

https://www.aei.org/op-eds/japans-cautionary-economic-tale/