Japanese local government bonds have not been defaulted, which is benefit to the efficient risk control system. The risk control system of Japanese local government bonds contains the central government＇ s implicit guarantee system, the central govern- ment＇ s check control system, and the financial control system, and has three characteristics of administrative control, weakened market mechanism and low economic benefits, which gives three enlightenments to China. First, formal institution is the key of controlling the risks of local governm...
