The International Monetary Fund has warned in a new report that market concerns over fiscal sustainability could trigger a "sudden spike" in Japanese government bond yields that could quickly render the nation's debt unsustainable and shake the global economy.
The fund's Japan Sustainability Report, released on its website yesterday, serves as a fresh reminder to Tokyo policymakers that the international community is worried about fallouts from Japan's potential fiscal problems.
Japan's public debt amounts to about twice its annual economic output -- a ratio worse than that of any other industrialised economy. (The Australian)
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