In the 1960s,many economists and policymakers believed the trade-off between inflation and unemployment was permanent.

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This belief was known as the Phillips Curve, which suggested that there was an inverse relationship between inflation and unemployment. As unemployment decreased, inflation would increase, and vice versa. However, this relationship broke down in the 1970s with the emergence of stagflation, where both inflation and unemployment were high.

In the 1960s,many Economists and Policymakers Believed the Trade-Off Between