Inflation targeting, in which the government sets a numerical target for inflation but assigns responsibility for achieving that target to the central bank, has become a widely used framework embodying these principles, but other similar monetary frameworks have also proved effective.
[6]  A recent speech by my colleague Alex Heath looked at the increase in labour market flexibility over recent decades, and the impact this might have on our understanding of spare capacity. See Heath A (2018), ‘The Evolving Labour Market’, Business Educators Australasia 2018 Biennial Conference, Canberra, 5 October.