, Columnist
Japan’s Unsustainable Deficit-Financing Model
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Financing government debt and deficits hasn’t been a problem for Japan: Until recent years, the country’s big-saving consumers provided the funds to finance the shortfalls.
Unfortunately, this also meant that Japanese consumers weren’t spending that money. In fact, there was so much saving left over that Japan had money to export. This is demonstrated by its trade and current-account surpluses.