Lately, I have had problems of getting a paper published and had to shy away from interesting topics because they are not in demand these days. But every now and then I stumble upon papers and wonder “Wow, how did you get THAT published?”. Here is an excerpt from a 2009 (!) paper:
Fifth, monetary policy is now widely agreed to be effective, especially as a means for inflation control. The fact that central banks can control inflation if they want to (and are allowed to) can no longer be debated after the worldwide success of disinflationary policies in the 1980s and 1990s.
… The Phillips curve is alive and well in current vintage empirical DSGE models, and a recent extensive literature has documented the degree to which the evolution of measures of real marginal cost can explain variations in the inflation rate.
If the Phillips curve can be exploited and the US currently has deflation and rising unemployment, why not inflate and thus reduce unemployment? (Maybe I am a little frustrated…)