The Monetarist-Keynesian Debate and the Phillips Curve: Lessons from the Great Inflation

Hetzel, Robert L.
March 2013
Economic Quarterly (10697225);Second Quarter 2013, Vol. 99 Issue 2, p83
Academic Journal
The article discusses how monetary policy was affected by the Great Inflation in the U.S. during the 1960s and 1970s. It is stated that the Phillips curve is a set of observations that show an inverse relationship between inflation and unemployment, and a flat Phillips curve would allow the achievement of full employment level with little increase in inflation. It is stated that the Great Inflation included a monetary aggregate (M1) that provided a good measure of the monetary policy.


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