Japan’s general government gross debt was 263% of GDP at the end of 2021. Borrowing may look affordable as long as the average yield is close to zero. However, low interest rates are no longer sustainable as Japan falls behind global monetary tightening trends. Professor Nishizawa discusses that a revitalization trial of the Japanese economy will all be an illusion without a serious discussion on debt affordability and a resolute goal for fiscal health.
Professor Nishizawa’s research fields include financing for development, Public-Private Partnerships (PPPs), sovereign debt, and debt sustainability issues.