Japan's 14-year, unfunded investment push sparks market fears of a Liz Truss-style shock
TL;DR Summary
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:business#debt-to-gdp#honebuto-no-hoshin#sanae-takaichi#unfunded-spending#world#yen-depreciation
- Can Japan avoid a Liz Truss-style shock as its PM embarks on a giant spending spree? The Guardian
- The sting in the tail of Japan’s lost decades Financial Times
- Breakingviews - Japan’s growth pitch is all hype and no substance Reuters
- Japan’s ‘Strong and Rich’ strategy could drive bigger yen swings Yahoo Finance Australia
- Japan's Economic Reckoning: Debt, Geopolitics, and the Limits of Monetary Power IndraStra Global
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