Prosperity for all: how to prevent financial crises
Following the Great Depression, macroeconomics was dominated by Keynesian ideas. But in the 1960s and 1970s, western economies experienced stagflation; a period of high inflation and high unemployment at the same time. Stagflation was deeply subversive of Keynesian economics because according to the textbook interpretation of Keynes’ ideas, an economy can experience high inflation or high unemployment; but not both.