They also emphasise the benefit to be had from less drastic recessions. Nonetheless,
they point out that higher growth is not a panacea because it brings with it the potential
for rising inflation. They suggest that we should aim to achieve as high a rate of growth
as is possible without causing rising inflation. They also provide an estimate of the
‘steady inflation rate of growth’ (SIRG) for Australia, since the floating of the Australian
dollar, of 4.37 per cent per annum. They suggest that, as a result, it may be possible to
get unemployment down to 5 or 6 per cent over the next four years, without causing rising
inflation