The Reserve Bank of Australia (RBA) has economic growth, price stability and an improved standard of living as its major goals. The RBA uses inflation targeting as one of its policy tools to achieve these goals. Define inflation targeting. Explain why inflation is more of a concern to businesses that are engaged in tradeable (export and import) activates, compared to those involved in domestic trade only. How would inflation targeting improve the living standards of all Australians? Explain Briefly?