It can be argued that Japan provides a template for the successful management of an economy experiencing long-term deflation. During the two so-called ‘lost decades’ since the early 1990s, the standard of living of the average Japanese household has been maintained, and even increased somewhat. The other side of the coin, however, has been the deprivation of government finances. The Japanese government simply gave away what it collected by issuing bonds to finance the deficit. However, if and