Study On The Japanese Government Bond And Its Operating Mechanism

In 1965,the Japanese government broke the principle of budget balance that had been adhered to since the end of world war ?.It was the first time that Japanese government issued long-term national debt,which embarked on the road of debt expansion.In 2000,Japan surpassed the United States for the first time as the the country with the largest national debt issuance.Especially since the bursting of the bubble economy,Japan's economic growth plummeted and began to face a large fiscal deficit.Japan had to continue to issue a huge amount of national debt,which has continued up to now.According to data from Japan's Ministry of Finance,by the end of 2018,the balance of Japan's national debt was 883 trillion yen,accounting for 156% of GDP in that year;the balance of central and local government debt was 1107 trillion yen,accounting for 196% of GDP in that year,which was the highest among developed countries.We can infer that the scale of Japan's debt problems is evident.At the same time,although Japan has a serious debt problem and the government is facing a heavy financial burden,Japan has not yet gone through a debt crisis until now.Inevitably,certain questions arise in people's minds.The severity of Japanese government bonds far exceeds that of the countries where the European debt crisis occurred,but Japanese government bonds can still be issued on a large scale,and the debt crisis has not yet broken out.What is the reason behind this? Is the national debt operating mechanism the reason for protecting Japan from the risk of a debt crisis?It is of great practical significance to study Japan's debt problem.On the one hand,this paper first analyses the evolution of Japanese government bonds and the characteristics of current national debts,and then analyzes the reasons for the coexistence of high-value government bonds and low-debt crisis risks in Japan from three aspects: issuance mechanism,circulation mechanism and risk prevention mechanism.On the other hand,in view of the existing problems of China's current national debt,we can learn from Japan's relatively perfect model of the operation mechanism of national debt,while at the same time avoiding the problem of government debts similar to those in Japan.The issuance of national debt in our country started comparatively late,and the various systems about debt are pretty imperfect.With the current slowdown of our economic growth,the problems of unbalanced issuance structure and unreasonable circulation mechanism of national debt in our country are gradually exposed.It is urgent to establish and improve the national debt system and prevent the occurrence of systemic financial risks.Compared with previous studies,this paper innovates in the research perspective.From the point of view of the mechanism of debt crisis,this paper analyzes the reasons why the Japanese government bonds did not appear the debt crisis even through government bonds are rising successively.On this basis,this paper analyzes that Japan's "debt-financed debt" model is not a perfect solution,and this model itself has great harm,so in the long run,the Japanese government must try its best to solve this problem.Due to the limitation of academic level and analytical tools,the deficiency of this paper lies in the lack of depth and comprehensiveness of the research on JGB.This paper focuses on how Japan can prevent the debt crisis from happening at different levels from the perspective of the three mechanisms of debt crisis.In addition,there is a lack of in-depth quantitative analysis on other debt issues,which are the direction and motivation of the following research work.