According to economists Robert Lucas and Thomas Sargent,the apparent short-run trade-off between unemployment and inflation in the 1950s and 1960s was the result of

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Lucas and Sargent argued that the short-run trade-off between unemployment and inflation, observed in the 1950s and 1960s, was primarily due to unexpected changes in monetary policy. They suggested that when the central bank unexpectedly increased the money supply, inflation would temporarily rise, and unemployment would fall, as people did not immediately adjust their expectations of inflation. This phenomenon is related to the concept of the Phillips curve, which posits an inverse relationship between unemployment and inflation in the short run. However, once people adjusted their expectations, the trade-off would disappear, leading to higher inflation without a corresponding decrease in unemployment.

According to Economists Robert Lucas and Thomas Sargent,the Apparent Short-Run