Koo argues that it was massive fiscal stimulus (borrowing and spending by the government) that offset this decline and enabled Japan to maintain its level of GDP.

One big offset to all the dollar liquidity and massive fiscal stimulus out there is the inclusion of all these other economies and their resources.

"The greater risk is of an excessively rapid tightening on the back of the first signs of an economic recovery, rather than a renewed surge in inflation as a result of current massive monetary stimulus."

The Obama Administration launched its High-Speed and Intercity Passenger Rail (HSIPR) Program with the massive stimulus in 2009.

At home, China's economy began to show signs of over-heating after two years of massive economic stimulus, with sharply rising food price inflation and spiraling house prices raising fears that China's economy was becoming an unsustainable credit bubble.

"With the fed funds rate at a multi-decade low - after a massive fiscal stimulus and after driving down the dollar for the past three years - how shocked can you be that there is an upward shift in inflation?"

The massive stimulus provided by the second world war that finally restored the economy to full employment could have just as easily occurred in 1931 as 1941, if there had been the political will.

Controlling rampant inflation and a runaway property market have been the government's top priorities through most of 2011, as policymakers grappled with the consequences of the massive monetary stimulus unleashed to yank China out of the global financial crisis.

For example Mr. King talks sensibly about global imbalances and the massive fiscal stimulus that has been used by governments to respond to the recession of 2009.

This continues to give the economy a very massive Keynesian stimulus.