The Japanese Canary in the Global Debt Coal Mine

The Japanese Canary in the Global Debt Coal Mine

A prospective rise in Japanese interest rates could indicate that not only Japan, but also other heavily indebted economies, including the United States, could face sharply higher yields on government bonds. The only way out for Japan is to boost economic growth; but for the US, it is to raise taxes.

The Japanese canary in the global debt coal mine

Barry Eichengreen weighs the implications of the Bank of Japan's announcement that it will soon consider raising interest rates