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Japan's government just green-lit a record $785 billion budget while pledging to rein in debt levels—sounds like classic policy tightrope walking. Here's why this matters beyond Japanese borders:
Massive fiscal spending typically fuels inflation and currency movements. When a major economy like Japan opens the spending spigot, it ripples through global financial markets—affecting everything from bond yields to risk asset demand.
The debt management promise is the interesting part. Japan's been running high debt-to-GDP ratios for years, so watching if they can actually maintain fiscal disciplin
Massive fiscal spending typically fuels inflation and currency movements. When a major economy like Japan opens the spending spigot, it ripples through global financial markets—affecting everything from bond yields to risk asset demand.
The debt management promise is the interesting part. Japan's been running high debt-to-GDP ratios for years, so watching if they can actually maintain fiscal disciplin