Yet faced with the deepest slump since the Great Depression, politicians in many advanced economies feel powerless: they have discovered that many of the most powerful tools to alter the distribution of resources power over interest rates, exchange rates, trade and fiscal policy, and the banking system are placed beyond their reach.

WSJ: Two Ways to Look at Sovereignty Issue

Suppose then that Japan does what it should spurring demand with monetary and fiscal policy, cleaning up the banking mess and vigorously pursuing reform elsewhere in the economy will that be enough to make the world economy a safe place?

ECONOMIST: As Japan goes?

The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector.

FORBES: Israel

But holding on to national sovereignty in both fiscal policy and the control of the banking sector may indeed be incompatible with the survival of the Euro.

FORBES: A Better Solution For The Euro Crisis: Europeanization Of Banking

Japan, the world's second biggest economy, has been sidelined because of its persistent failure to push through the fundamental reforms needed to overcome its problems reforms in the banking sector, and in fiscal and monetary policy.

ECONOMIST: The fragile world recovery | The

Germany's low inflation rate, its limited room to ease monetary or fiscal policy and the problems in its banking system look horribly like the early symptoms seen in Japan in the mid-1990s before it sank into deflation.

ECONOMIST: Euro-area economies

The cuts are reminiscent of similar fiscal policy actions taken in 2008 during the U.S. and European banking crisis.

FORBES: Brazil's "Black Friday" Gives Market An Early Christmas Present