| ID | 134218 |
| Title Proper | Sovereign debt crisis |
| Other Title Information | why Greece, but not Japan? |
| Language | ENG |
| Author | Yoshino, Naoyuki ; Vollmer, Uwe |
| Publication | 2014. |
| Summary / Abstract (Note) | This paper asks why Japan has not yet suffered from a sovereign debt crisis, although its gross public debt as a percentage of GDP is much higher than in Greece. We use a simple stylized model to explain the occurrence of both a fundamental and a speculative debt crisis. We apply this model to both countries and derive some hypotheses about why investors are still ready to hold Japanese Government Bonds. In particular, we point to the significance of domestic debt holdings, to the central bank's government debt purchases, to investors' access to "safe havens," and to the role of an autonomous monetary policy. We also analyze potential challenges to Japan's long-term fiscal situation, resulting from its aging population. |
| `In' analytical Note | Asia Europe Journal Vol.12, No.3; Sep.2014: p.325-344 |
| Journal Source | Asia Europe Journal Vol.12, No.3; Sep.2014: p.325-344 |
| Key Words | Greece ; Japan ; Economic Crisis ; Financial Crisis ; Economic Sovereign ; Debt Crisis ; Monetary Policy ; Economic Policy ; Fiscal Policy ; Japanese Economy ; Greek Economy |