Over the long run the Volcker disinflation

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The Volcker disinflation primarily involved a shift of the short-run Phillips curve to the left as the Federal Reserve, under Paul Volcker, implemented policies to reduce inflation. This involved temporarily higher unemployment to lower inflation expectations. The long-run Phillips curve, which represents the relationship between inflation and unemployment when expectations are fully adjusted, is not affected by such policies, as it is vertical at the natural rate of unemployment.

Over the Long Run the Volcker Disinflation