August 07, 2013

IMF risk scenario for Japan stimulus program imagines investors demanding higher interest rate for greater risk

"under one scenario envisaged by the IMF in its report, investors might demand two percentage points more interest on the country's bonds to compensate for the greater risk. That would force the government to slash spending and sharply raise taxes, sending the Japanese economy into a deep slump"

Source: IMF sees risks in Japan gamble
By Thomas Catan, Ian Talley
The Wall Street Journal
Weekend Australian Newspaper
August 3 - 4th 2013, page 28

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