Key points
For nearly 30 years Australia had benign economic cycles so the current environment may be a bit of a shock for many.
Still low unemployment and still high inflation despite slowing economic growth are not that unusual because they both normally lag big swings in the economic cycle.
The RBA and other central banks need to tread carefully and allow for the lags from the rapid rise in interest rates to work through - lest they end up pushing unemployment for higher than they need to in order to return inflation to target.
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