Noah Smith wrote about Japan here.
This brought out Paul Krugman to explain the consequences of a wage-price-flexibility-in-a-liquidity-trap-again-again-again
Noah Smith of course then replied. Check out the comments in particular.
I feel this debate will continue a while yet and if so I will update but this shows the blogosphere at its best.
(Simon Wren-Lewis has been the prime person behind recent debates)
Here is an important topic and there is a good and robust discussion about the subject.
I like both these writers however on this topic I think Kruggers has the advantage.