Japan's Rising Debt Levels Could Impact Future Economic Growth
The Japanese government faced economic challenges in the 1990s and increased public spending, leading to a significant rise in government debt. This raised concerns about the future financial burden and the need for fiscal consolidation. While high debt levels can slow economic growth, budget deficits can also help absorb economic shocks. Therefore, it is important to balance the need for fiscal discipline with the role of deficits in stabilizing the economy.