Our approach at the RBA has been, of course, to seek to  6  BIS Review 58/2002  avoid this particular problem. That is what our inflation-targeting system has been doing: by measured, early responses to a significant probability that inflation will rise, we have headed off serious inflation problems before they have become entrenched.
That policy has also been prepared to lower interest rates in response to prospective economic weakness and falling inflation. This symmetric approach has helped to deliver not only low inflation, but also pretty low average interest rates for the past decade, and has been associated with a good overall economic performance.