As well as proposing a lot more old-style deficit spending on public works and the like, the soon-to-be Japanese prime minister campaigned on a pledge to raise the Bank of Japan's inflation target to from 1% to 2%, insisting there should be unlimited monetary stimulus until that target is reached.

BBC: New Year messages from Japan

They could stand firm on an NGDP target or pass the mother of all stimulus bills.

FORBES: What If This Is As Good As It Gets: Financial Stability Edition

After emphasizing that the Fed remains committed to both sides of their mandate, Bernanke said that inflation expectations remain anchored at or near the 2% target the Fed considers adequate, and sought to differentiate monetary stimulus from fiscal stimulus.

FORBES: Bernanke: 'I Don't Think Our Tools Are That Strong'

Adam Posen, a former U.K. rate-setter with a reputation as a "dove" who consistently played down inflation concerns and favored greater central-bank stimulus, told Parliament last month that abandoning the inflation target would be a "grievous error" that would raise unnecessary concerns over the U.K.'s commitment to sound money.

WSJ: Some of the Carney Gloss Is Coming Off

He said that people would have to be confident that rates would stay very low even if there was a small rise in inflation above the target level, because otherwise, low rates would be a less effective stimulus to the economy.

BBC: Mark Carney suggests targeting economic output

The big fiscal stimulus enacted this month by Mr Abe will get Japan part way towards his 3 per cent nominal growth target, but advisers to the government say the BoJ needs to pull its weight too.

CNN: Bank of Japan bows to inflation pressure