Japan's public debt remains one of the highest among advanced economies, but historically low interest rates have helped manage the cost of servicing it. However, as Japanese Government Bond (JGB) yields rise, concerns about debt sustainability, fiscal policy, and monetary policy are growing. Professor Toshitaka Sekine of Hitotsubashi University will address these issues in an upcoming seminar, exploring whether economic growth can continue to outpace the effective interest rate on government debt.
Sekine will also discuss the importance of distinguishing between gross and net debt, as well as the implications of the government's "responsible and proactive fiscal policy." Additionally, he will examine how aging populations have impacted demand for JGBs. The seminar will conclude with a question-and-answer session for attendees.
With over three decades of experience as an economist at the Bank of Japan, the BIS, and the IMF, Sekine brings a wealth of expertise to the discussion. His research focuses on inflation dynamics, exchange-rate pass-through, corporate investment, and bank lending behavior.