https://www.rba.gov.au/speeches/2019/sp-gov-2019-07-25.html  1/14  7/25/2019  Inflation Targeting and Economic Welfare | Speeches | RBA  Graph 1  So this means that today's HSC students are likely to be writing about why inflation is so low at the same time that unemployment is also low.
I hope that they are also being asked to write about how public policy should respond to low inflation and its close cousins of slow growth in nominal wages and household incomes. These are important issues to be thinking about. Given this, I would like to use this opportunity to address two related questions that I am asked frequently.