Well the RBA's target rate is 2-3%, not below 2%...
So you could talk about the government's attempts to sustain predictable inflation through fiscal stimulus to prevent deflation.
Just need to find a less convoluted way of saying it...
Contractionary fiscal policy will also reduce inflation through lowered supply of money.
And no I dont think there is that much recent discussion on monetary policy because (other than mortgage rates) it is generally not regarded as political.
A few things.
fiscal policy is not used to influence inflation. It never has been. even last year with the whole 'inflation genie' inflation was seen as merely a constraint on spending rather than a policy goal (despite what the government was suggesting). In general fiscal policy is usually not used to stimulate the economy and as such its influence on inflation is just a consequence rather than a goal. certainly there are times (such as now) where fiscal policy is being actively used, however the consensus is that in ordinary times it should merely balance to meet the governments current and future financial obligations.
contractionary fiscal policy has no effect on the money supply. I am not sure where you are getting this from.
inflation targeting is the most prominent inflation policy, and in the current economic environment there is an incredible amount of discussion concerning the role of inflation. More specifically the debate over whether monetary policy should be concerned about asset price inflation.
