All economists agree that deflation is very bad for the economy, what they disagree on is how to defeat

deflation. Now Japans opposition leader shinzo abe in the last few days has come out and said that he wants the bank of Japan to set a target of 2% for inflation, and in fact if he becomes prime minister in next months election he said he would like to go further and force the bank of Japan to set a target of 3% and to do that by a policy of unlimited monetary easing. And Indeed he has said that, more controversially, that he would even introduce legislation to force the bank of Japan to purchase government construction bonds for a public works program. Now, some economists support mr abe, they say that Japans economy has been in deflation and stagnation for so many years now that really bold action is now the only answer. But other economists say that public works were tried in the 1990s and that they didnt work and what japan really needs is structural reform, the deregulation of the domestic market and a free trade pact with the united states.