Please allow me the indulgence of defining some such issues. Growth-inflation balance 14. The first, and possibly the most important debate, is about balancing between growth and inflation in the policy context. This is a balance that both governments and central banks struggle with. In my view, this debate has been clouded by some oversimplifications.
One such oversimplification is to say that governments are for growth and central banks are for price stability. Another oversimplification is to assert that there is a tension between growth and inflation, and that one necessarily has to play the trade-off between growth and inflation in policy making. 15.