The conversation between human and AI assistant.
How can Japan service its public debt if its target inflation rate of 2% is reached?
That makes sense. But what are the risks associated with relying on inflation to service debt?
One of the risks is uncertainty. Inflation rates can be difficult to predict, and if inflation rates remain low, servicing the debt could become more costly. Additionally, if inflation rises too quickly, it could lead to negative economic impacts, such as reduced purchasing power for individuals and businesses.