§ There is now world-wide recognition that inflation is the enemy of growth and employment. And it is just as widely recognised that sustained monetary restraint is necessary if inflation is to be kept permanently under control. Of course, there is not a rigid relationship between money and prices. Of course, there are other influences on inflation, particularly in the short run. We always made that absolutely clear. But monetary policy is of fundamental importance. These principles apply to this country just as much as to any other.