More recently, a higher inflation target debate played out in Japan in a more high profile fashion. In deference to the electoral commitment of the incoming government to provide a growth stimulus, the Bank of Japan raised its goal of 1% inflation to a target of 2% inflation which it hopes to achieve through unlimited bond purchase. 27.
In the UK, a battle of ideas is playing out on how to revive the sagging economy. The Government has firmly embraced a fiscal consolidation plan, but the private sector is yet  2  Ben S Bernanke, “Japanese Monetary Policy: A Case of Self-induced Paralysis”, Institute for International Economics, Special Report 13, September 2000.