Since the early 1990s, Japan's potential GDP growth has collapsed while its debt has ballooned. It's no coincidence that Japan has become the world's monetary policy outlier!
Until I read this article, I assumed that the debt the U.S. government has, is quite unsustainable. Don't ask me why I thought that, but the amount of debt is so enormous, that paying rent on that debt seems an undoable task in the long run. But as Japan seems to be able to do it, I guess the U.S. government will be able to do it as well. Just keep the interest rate in check and you're just fine. Or isn't that the gist of this article?
Until I read this article, I assumed that the debt the U.S. government has, is quite unsustainable. Don't ask me why I thought that, but the amount of debt is so enormous, that paying rent on that debt seems an undoable task in the long run. But as Japan seems to be able to do it, I guess the U.S. government will be able to do it as well. Just keep the interest rate in check and you're just fine. Or isn't that the gist of this article?