We can't fix our high unemployment with inflation, because inflation is hard to get rid of once it's in the system. How do you get rid of high inflation? Volker did it by causing a huge demand glut, which caused unemployment.
So the problem of unemployment cannot be solved by increasing demand (and thus inflation) because if it works, we might overshoot and then have to do something that causes high unemployment again when the Fed reduces demand to get rid of it.
The problem I hope is obvious, if we do NOTHING we are GUARANTEED the bad outcome that would result in having to fix high inflation expectations, not just the chance of it. Everyone accepts that unemployment was necessary to bring down inflation expectations. Why can no one accept that higher inflation is necessary to bring down unemployment expectations?
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