Government debt as a percent of GDP, is the amount of national debt a country has in percentage of its Gross Domestic Product. Although Japan is a country considered developed, it has quite a large amount of depts. Research tells us that from 1980 to 2011 the average debts was around 112%. The last years amount was nearly doubled, perhaps it arrived up to 211% of the GDP. The information brings up to the conclusion that with the evolving of the economic and financial crisis, Japan's debt increased in order to keep up its development.
Japan's fiscal policy is expansionary, which means that taxes are reduced and government spending is increased. The japanese government feels it is better for its countries economy to fight national debt to increase the C and I factors (Household consumption and Investment). Graphically speaking, the Aggregate Demand would have a shift to the right
