According to General government debt data from OECD(Organisation for Economic Co-operation and Development), some countries, such as Japan, Greece and Italy, have very high national debt-to-GDP ratios. Japan’s debt-to-GDP ratio is about three times higher than the OECD average, and the figure has been continuously increasing since 1996. However, it is not likely to become serious situation because most of Japan debt holders are Bank of Japan(43.42%) and Japanese banks and insurers(33.99%). Even though it looks like government debt, it won’t ever need to default on debt because Japanese government can simply print more currency to pay it back. However, we should keep our eyes on Italy rather than Greece because Italy’s economy is ten times bigger than that of Greece and Italy has the world’s third biggest debt market. (Desmond Lachman, 2022)
Desmond Lachman (2022, September 15). The last thing the world needs is an Italian debt crisis. Will Italy Start Another Round of European Sovereign Debt Crises? Barron’s. Retrieved November 7, 2022, from https://www.barrons.com/articles/italy-debt-crisis-ecb-europe-economy-51663187186