Gordon, Robert J.: Dynamic considerations in the choice of inflation and unemployment targets. A comment on Robert E. Hall, "The Phillips curve and macroeconomic policy", pres. at the Rochester Conference on the Phillips Curve. 10.4.1973. S. 149-159

This paper analyzes two-way interactions between structural reform and macro policy. If structural reforms increase the flexibility of labor markets, they are likely to improve the short-run inflation-unemployment tradeoff, providing an incentive for policymakers to expand aggregate demand....