Dear SSJ Forum members,

NBR has just released a new Q&A with Japan economics expert William W.
Grimes (Boston University) that examines the challenge that Japan is facing to reduce its substantial public debt. A link to the full interview and a summary are below.

"Japan's Debt Challenge"

Q&A with William W. Grimes, Boston University

Link: http://m.nbr.org/oGU08j

SUMMARY

Half a year has passed since an earthquake and tsunami devastated eastern Japan, and the nation is still facing massive reconstruction efforts, a continuing nuclear crisis in Fukushima, and sky-rocketing unemployment in the affected regions. Prime Minister Yoshihiko Noda and his administration confront one of the greatest economic challenges in Japan's history--how to rebuild a nation when the government's public debt exceeds GDP by 200%.

In an interview with NBR, William W. Grimes (Boston University), a National Asia Research Associate and expert on Japan's economics, provides insight into the country's debt dilemma, including what measures the Democratic Party of Japan (DPJ) could take to reduce the level of government debt.

Read the full interview to learn the answers to these
questions:

- How would a downgrade in Japan's credit rating affect the nation's ability to borrow?

- Would raising Japan's consumption tax help combat the nation's debt crisis?

- How can Tokyo continue to finance post-quake reconstruction efforts while also reducing the current level of debt?

Read the full interview: http://m.nbr.org/oGU08j

Tracy Timmons-Gray
The National Bureau of Asian Research (NBR) Seattle, WA