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How Japan Borrows $9 Trillion Practically for Free

A low inflation rate and slow growth help


Japan’s outstanding national debt is more than 1 quadrillion yen ($8.4 trillion) and more than twice the size of the economy. That's way more even than Greece, which is fighting with the rest of Europe for some relief over its debt load.

Yet Japan has the world’s fourth-lowest borrowing costs, even as its borrowings continue to rise. Weird, right?