Orphanides, Athanasios; Williams, John C. - Federal Reserve Bank of San Francisco - 2003
the natural rate of unemployment during the late 1960s and 1970s on the formation of expectations and macroeconomic … outcomes. We find that the combination of monetary policy directed at tight stabilization of unemployment near its perceived … and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, inflation …
