ABSTRACT
At the end of 2000, Japanese government bonds (JGBs) issued by the central government reached US$3.18 trillion, while the outstanding balance of US Treasury securities was $2.97 trillion. In fiscal year 2001, Japan’s Ministry of Finance (MOF) will raise a gross amount of ¥98.5 trillion through the issuance of JGBs, whilst the US Treasury has been playing down its debt. As a result, Japan will remain the largest issuer of government debt in the world in the foreseeable future. As summarized in Table 13.1, the International Monetary Fund (IMF) predicts that government debt is expected to reach 139.5 percent of GDP in year 2001, whereas the United States and United Kingdom are expected to achieve debt levels of 53.8 percent and 38.3 percent relative to their respective GDPs.
