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Japan's 14-year, unfunded investment push sparks market fears of a Liz Truss-style shock

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Source: The Guardian
Japan's 14-year, unfunded investment push sparks market fears of a Liz Truss-style shock
Photo: The Guardian
TL;DR

Japan’s new Honebuto no Hoshin plan would channel about ¥370tn into 17 sectors by 2040 to lift growth above 1%, but investors worry about unfunded spending and debt sustainability after Japan’s debt-to-GDP peaked around 260%; markets have pushed up yields and the yen has weakened, with questions over funding sources and BoJ independence and whether the plan can outpace China, warning of a Liz Truss-style shock if financing details are missing.

Topics:businessworld#debt-to-gdp#honebuto-no-hoshin#sanae-takaichi#unfunded-spending#world#yen-depreciation
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  1. Can Japan avoid a Liz Truss-style shock as its PM embarks on a giant spending spree?  The Guardian
  2. The sting in the tail of Japan’s lost decades  Financial Times
  3. Breakingviews - Japan’s growth pitch is all hype and no substance  Reuters
  4. Japan’s ‘Strong and Rich’ strategy could drive bigger yen swings  Yahoo Finance Australia
  5. Japan's Economic Reckoning: Debt, Geopolitics, and the Limits of Monetary Power  IndraStra Global

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