Posen: Economists mistaken to make so much of the 1970s; 1970s stagflation was a complete outlier

January 13, 2020

"Central banks should take seriously the evidence of the past 30 years in the U.S., Western European, and Japanese economies that the Phillips Curve, the short-run trade-off between inflation and unemployment, can remain persistently flat. As the 1970s fall further into the rear-view mirror, it becomes clear that this situation is more the norm for advanced economies than the periods of high-inflation and upwards spiraling wages."

Adam Posen: Central bankers need to overhaul outdated thinking on labor markets (2020)