New Data Points Issue Re-examines Japan's Debt

Summary: Japan, the third-largest economy in the world by GDP, is also the most heavily indebted of the highly developed countries. Its gross debt of 1,175.84 trillion yen is an eye-popping 213.7% of GDP. In this issue of Data Points, authors Dennis W. Jansen and Tong Ye present calculations of Japan's net debt-to-GDP ratio after adjusting for the substantial asset holdings of the government of Japan and for the large quantity of debt held by the Bank of Japan.

Data Points is an occasional paper series that aims to inform policymakers and the public of the facts that bear on contemporary policy matters. Ideally, a better shared understanding of these facts will lead to less disagreement on policy.  The Data Points series gives undergraduate and M.A. students the chance to perform first-hand research and data analysis, as well as the opportunity to develop their writing skills, all in collaboration with PERC staff.

Click here to read the full issue, "Japanese Government Debt: It's Not As Bad As You Might Think"