We can look at the four key principles that emerged as part of the OECD consensus during the 1980s. The first principle relates to monetary policy. It basically recognized price stability as the appropriate goal for monetary policy over the medium term.
Policy-makers were advised to respond symmetrically, and in a forward-looking manner, to excess demand and supply so as to keep the economy on an even keel, thus achieving price stability and maximizing output over the medium term. The second principle applied to fiscal policy and the need for a more disciplined approach to managing the public purse.