The Debt/GDP Ratio Is NOT Useful. What You Need To Know 4
However, low interest rates don’t necessarily mean that creditors will keep lending to a country.
If they deem Japanese interest rates to be too low for their liking, they can always invest in some other fixed income asset.
Capital is, after all, extremely mobile in this day and age, which brings us to a crucial factor in Japan’s debt “longevity” – creditors are willing to roll over the country’s debt, even at ultra low interest rates.