If inflation targeting were abandoned and instead the government set about a concerted policy of expanding aggregate demand to reduce unemployment, the Phillips curve would become

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The Phillips curve posits an inverse relationship between inflation and unemployment, suggesting that lower unemployment comes with higher inflation, and vice versa. In the short term, this relationship can be downward-sloping, indicating that policies to reduce unemployment can lead to higher inflation. However, in the long term, expectations adjust, making the Phillips curve vertical, indicating that attempts to reduce unemployment below its natural rate solely by expanding aggregate demand will not succeed and will only lead to higher inflation.

If Inflation Targeting Were Abandoned and Instead the Government Set