While much of the attention from the crypto and traditional markets remains on the U.S., a recent analysis by a leading economist suggests it’s time to look east.
Japan is teetering on the edge of a debt crisis, but a potential recession in the U.S. could provide the land of the rising sun a temporary window of relief, according to Robin Brooks, senior fellow in the Global Economy and Development program at the Brookings Institution.
Japan's debt-to-GDP is a problem
For years, Japan has held the highest public debt-to-GDP ratio among advanced economies, consistently hovering above 200%. However, in the post-COVID era marked by massive fiscal spending, investors' tolerance for such high debt levels has waned.
To complicate matters, Japan's inflation, as measured by the consumer price in